In a transfer drive mode switching control system employing a shift actuator that switches from one of a plurality of drive mode positions of a transfer to the other, a drive mode position sensor is provided to detect the drive mode position switched by the shift actuator and to generate information regarding the drive mode position. A transfer control unit outputs a control command signal based on the drive mode position information to the shift actuator for controlling switching between the drive mode positions responsively to a driver-selected drive mode. The transfer control unit allows only a switching operation between predetermined two different drive mode positions corresponding to both ends of a working range of the shift actuator at which motion of the shift actuator is stopped mechanically, in presence of a failure in the drive mode position sensor.