This is a great question. The short answer is usually yes.
Let’s talk about what the difference is between AWD and 4WD first.
The primary purpose of all-wheel drive vehicles, which differs from four-wheel drive, is centred around on-road driving. Drivers that live in regions with heavy seasonal weather like rain and snow will find that all-wheel drive provides better traction on roads affected by the weather.
AWD systems send power to the rear and front wheels
Many AWD systems operate the same as front-wheel drive and rear-wheel drive. Until more traction is needed, the computer system will decide where to send the power.
This is great for having people or many items in the car as it can decide where to send the power and can help with fuel economy. With high-performance AWD vehicles, the computer keeps the vehicle planted when turning at high speeds.
So, what is the difference between this and four-wheel drive?
It is very similar to All wheel driving, except four-wheel drives are more designed for off-road. The main difference is that 4WD sends power equally to every wheel.
4WD is not designed for long periods on dry pavement and relies on drivers to shift in and out with some mechanism. It used to be a manual process, although now it can be with a button, a lever, or a knob. Some vehicles have different settings for low-speed grunt and traction or high-speed grip for icy highways and snowy roads.
Always remember that these great systems for vehicles do not make them invincible to breaking, wet roads, cliffs, and everything else. Always be careful.
With towing AWD and 4WD, you need to have all wheels off the ground because they try to move together. If you only lift the rear or front wheels and drag the vehicle, you will most likely destroy the gearbox from unnecessary tension. You can disconnect wheels from this system with the AWD, although this is a big job needed with an experienced mechanic and not worth it just for a towing. With AWD, always have the vehicle on a tray with all wheels off the ground!
Some 4WD can be put into two-wheel driving with a button on the dashboard, making them ok to be towed with only two wheels off the ground. Always double-check and ask, as this can be a costly mistake to get wrong!