Transfer case clutch is crucial in determining traction torque distribution between front and rear tires for four-wheel-drive (4WD) vehicles. Estimating time-varying clutch surface friction coefficient is critical for traction torque control since it is proportional to the clutch output torque. As a result, this paper proposes a real-time adaptive lookup table strategy to provide the time-varying clutch surface friction coefficient. Specifically, the clutch-parameter-dependent (such as clutch output torque and clutch touchpoint distance) friction coefficient is first estimated with available low-cost vehicle sensors (such as wheel speed and vehicle acceleration); and then a clutch-parameter-independent approach is developed for clutch friction coefficient through a one-dimensional lookup table. The table nodes are adaptively updated based on a fast recursive least-squares (RLS) algorithm. Furthermore, the effectiveness of adaptive lookup table is demonstrated by comparing the estimated clutch torque from adaptive lookup table with that estimated from vehicle dynamics, which achieves 14.8 Nm absolute mean squared error (AMSE) and 2.66% relative mean squared error (RMSE).