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As vehicle fuel economy continues to grow in importance, the ability to accurately measure the level of efficiency on all driveline components is required. A standardized test procedure enables manufacturers and suppliers to measure component losses consistently and provides data to make comparisons. In addition, the procedure offers a reliable process to assess enablers for efficiency improvements. Previous published studies have outlined the development of a comprehensive test procedure to measure transfer case speed-dependent parasitic losses at key speed, load, and environmental conditions. This paper will take the same basic approach for the Power Transfer Units (PTUs) used on Front Wheel Drive (FWD) based All Wheel Drive (AWD) vehicles. Factors included in the assessment include single and multi-stage PTUs, fluid levels, break-in process, and temperature effects.