'awd' originates as an abbreviation of the English phrase 'all-wheel drive', where 'all' meant 'every' and 'wheel' referred to the rotating road-contacting element of a vehicle; 'drive' meant 'to propel or power'.

The phrase 'all-wheel drive' arose in the early 20th century to describe drivetrains powering every wheel; the initialism 'AWD' developed later as automotive shorthand and became common in technical literature and marketing.

Initially used strictly to describe systems that permanently delivered power to all wheels, usage broadened to include various systems (full-time, part-time, electronic coupling) that distribute power to all wheels as needed.