The present invention relates to a transfer case (16) lubrication system (42) that includes a housing (44) defining a chamber and having a lower portion (58). A partition (46) extends from the lower portion (58) and is disposed in the chamber so as to define a reservoir for oil, adjacent to the partition (46) and spaced from the chamber. First and second sprocket (50)s are supported in the chamber, with the first sprocket (48) being spaced from the reservoir. The system also includes a pump assembly (52) having an oil pump (78), a pickup (80) in fluid communication with the pump and at least partially disposed in the reservoir, and a spray bar (82) in fluid communication with the pump for directing oil from the reservoir to a predetermined location within the chamber. A chain (54) connects the sprockets and is spaced from the partition (46) so as to generate a windage force for transferring oil from the chamber to the reservoir in operation.