If you flip the switch to 4hi - it works as AWD. I keep mine in 4hi all winter. Locking the differential will make it act like a true 4wheel drove.
Yes and no, I just want to clarify this point because it is often confused on this forum with newer members (not picking on you, it's just something that does pop up from time to time.)
The 4th Gen 4Runner in particular is a 4WD vehicle, it comes in two flavors of 4WD.
Part-Time 4WD which means you can switch between 2WD, 4Hi, and 4Lo (all V6 4WD units are equipped with Part-Time 4WD,) the other option is
All-Time 4WD (all V8 4WD units are equipped with this.) The biggest difference between the two is the that Full-Time 4WD does not have a 2WD option. It basically means that the V8's are always in 4Hi (the V6 will drive exactly the same as the V8 in 4Hi and it is perfectly okay to use it in daily driving as many members do.)
The main distinction I want to make here is mainly between AWD & 4WD (they do drive similar, but they are two completely different systems.)
All-Wheel Drive means that there is only a single stage transfer gearset (basically all it is is a secondary differential that shifts some power to the other axle as well.) An AWD vehicle is typically either FWD or RWD biased with some power distributed to the second axle; the "transfer case" is little more than a very small gearset attached to the end of the transaxle or transmission.
A 4WD vehicle has at minimum a 2 stage Transfer Case (often chain driven) that allows you to further change the gearing of the vehicle when in 4WD. This means that your final drive ratio is modified by selecting what transfer case position you want, (i.e. in 4Lo your gearing is so low in a 4th gen you cannot really go about about 30~35mph)
This is something that an AWD vehicle does not have the capability to do, not to mention the system is not as robust/stout enough to handle the type of low speed torque required to do some off-roading (which is why you have a 4Lo gearset to begin.)
Additionally all North American (basically all US model) 4th Gens come with a T3 Torsen Center Differential that allows torque distribution without binding up the 4WD system. This basically means that the vehicle can be driven in 4Hi on the road with minimal to no impact on driving characteristics (where as say a Jeep or other Domestic vehicle with a Part-Time 4WD system will bind and skip in turns when trying to drive on-road.)