A limited slip differential (or LSD for short) is a type of automotive differential gear arrangement that allows for some difference in angular velocity of the output shafts, but imposes a mechanical limit on the disparity.

In an automobile, such limited-slip differentials are sometimes used in place of a standard differential, where they convey certain dynamic advantages, at the expense of greater complexity.

In the Gran Turismo games, an LSD will also allow for greater and smoother acceleration and deceleration, and if the LSD is a full custom service, it can improve the handling of a car at a certain torque level.