This paper focuses on the concept of utilizing torque-biasing systems on a four-wheel drive vehicle for improving vehicle stability and handling performance. In contrast to brake-based yaw stability control systems, torque biasing has the potential to provide yaw stability control without slowing down the longitudinal response of the vehicle. An inexpensive system configuration is considered in which the driveline is based on a front-wheel-drive system with on-demand transfer of torque to the rear. The torque biasing components of the system are an electronically controlled center coupler and a rear electronically controlled limited slip differential. A hierarchical control architecture is presented in which an upper controller determines desired yaw moment for achieving yaw rate and slip angle control. The lower controller attempts to achieve the desired yaw moment using torque biasing. Theoretical analysis shows that transfer of longitudinal tire forces can effectively be used to achieve any desired yaw moment for the vehicle. However, the use of torque biasing cannot always achieve the desired transfer of longitudinal tire forces. Simulations show that the proposed control system can always effectively provide under-steering yaw moments but can provide over-steering torque moments only during on-throttle maneuvers. The experimental data show a significant stability improvement for a low-friction slalom maneuver. The results presented in the paper shed important light on the possibilities and limitations of using torque biasing for vehicle yaw stability control.