A disconnecting differential assembly includes a first dog, a second dog, and an actuator. The first dog can include first engagement features fixedly coupled to a first side gear and disposed within the differential case. The second dog can include second engagement features and an annular body. The second engagement features can be radially outward of the annular body and fixedly coupled thereto. The annular body and second engagement features can be disposed within the differential case. The second dog can be rotatable relative to the differential case and the actuator can axially move the second dog between a first position wherein the first and second engagement features are disengaged, and a second position wherein the first and second engagement features are engaged to selectively non-rotatably couple the first and second dogs. The annular body can be adapted to be non-rotatably coupled to an output shaft.