A smart driveline disconnect assembly having a torque coupling assembly, an actuator, at least one sensor and a controller is provided. The torque coupling assembly is configured to selectively couple torque between a transmission and a final drive assembly. The actuator is configured to activate the torque coupling assembly. The at least one sensor is used to generate sensor information. The controller is configured to control the actuator based at least in part on the sensor information. The controller is further configured to determine at least a thermal energy level associated with the torque coupling assembly based on the sensor information and at least in part control the actuator based on the determined estimated thermal energy level.