The purpose of this research is to develop a new torque vectoring differential (TVD) for vehicle applications and investigate its effect on vehicle dynamic control. TVD is a technology that is able to distribute the engine torque to the left and right driving wheels at different ratios so that the yaw motion control can be realized. Attention has been paid to this technology in recent years because of its potential to improve the vehicle performance and driving safety. In this study, a new TVD design with a Ravigneaux gearset was developed. This new design is able to use only one pair of gearsets to generate two different speed ratios, and the weight and volume of the system can be reduced. To execute the research, current TVD designs were analyzed and their design principles were clarified. Next, a new TVD design with Ravigneaux gearset was proposed. Then the connecting manner and the gear ratio of the Ravigneaux gearset were discussed. The dynamic equation of the system was then derived and the operation of the system was simulated in a MATLAB program. Further simulation was performed with a vehicle dynamic model in SimulationX to demonstrate the effect of the new system. The results of this study show the potential of building a new TVD with a Ravigneaux gearset and can be helpful for further system development.