A differential includes a disconnect feature. When in a disengaged state, the drive gear is decoupled from the differential carrier. As a result, the portions of the powertrain that would provide propulsion through the differential may be stationary and parasitic drag is decreased. The differential is transitioned into an engaged state by providing electrical current in a solenoid coil fixed to the housing. A solenoid piston acts through a thrust bearing to slide a sleeve, thereby coupling the carrier to the drive gear.