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Most of the passive limited-slip differential systems compromise the handling and mobility. Mobility requires aggressive limited slip action, while the handling needs a conservative intervention. Active differentials allow the vehicle to satisfy the two performance criteria without any compromise. Active differential system consists of an active differential, sensors, and an electronic control unit (ECU). An active differential should be combined with a proper control strategy so that the system can function as was intended in various road or handling situations. This paper presents the modeling, control and simulation of a vehicle equipped with an active differential system.