A two-speed power take-off unit adapted for installation in an all-wheel drive vehicle having a transversely mounted engine/transaxle powertrain. The two-speed power take-off unit includes a planetary gear reduction unit capable of establishing a high-range and a low-range drive connection between the powertrain and a transfer assembly. The transfer assembly provides drive torque to a front differential assembly driving the front wheels and a PTU gearset driving the rear wheels.