A differential unit includes: a pinion gear shaft including a shaft portion and a gear portion; a ring gear meshing with the gear portion; a differential case that rotates with the ring gear; a differential gear mechanism accommodated in the differential case; a differential carrier having an accommodating space accommodating the differential case and the ring gear; and a pair of bearings supporting the pinion gear shaft such that the pinion gear shaft is rotatable with respect to the differential carrier. The differential carrier has an inner cylindrical portion, an outer cylindrical portion, and a connecting portion that are provided as a single member. The inner cylindrical portion has the pair of bearings fitted in the inner cylindrical portion. The outer cylindrical portion is provided radially outward of the inner cylindrical portion. The connecting portion connects the inner cylindrical portion and the outer cylindrical portion.