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In today's competitive automobile marketplace with reduced vehicle development time and fewer prototypes/tests, CAE is playing very crucial role in vehicle development. Automobile environment demands ever improving levels of vehicle refinement. Performance and refinement are the key factors which can influence the market acceptance of vehicle. Driveline is one of the key systems whose refinement plays critical role in improved customer satisfaction. Because of the virtue of the driveline functionality, driveline induced noise and vibration are the most common issues in the AWD vehicle development programs. Refinement of the drive line needs complicated nonlinear full vehicle CAE MBD models for the evaluation of driveline induced noise and vibration responses at different operating conditions [1]. In this paper a simplified approach is adapted for solving the Noise & Vibration issue which has been identified at the prototype testing level of an AWD vehicle development.