An on-demand two-speed transfer case is equipped with a planetary gearset assembly and a range shift mechanism to provide high-range and low-range drive connections. The transfer case is also equipped with a dual-mode bi-directional overrunning clutch and a mode shift mechanism to establish on-demand and part-time four-wheel drive modes. Further, the transfer case includes a disconnect clutch and a disconnect shift mechanism to establish a two-wheel drive mode in addition to the four-wheel drive modes.