A voltage regulator includes first and second transistors arranged in parallel and configured to regulate current flow to an output node, and a sensing circuit configured to sense a voltage level at the output node and provide a signal proportional thereto. the regulator also includes a control circuit configured to receive the signal from the sensing circuit and provide control signals at control terminals of the first and second transistors such that voltage at the output node is maintained substantially at a selected level. The control circuit further configured to hold the second transistor in an off state while a demand for current at the output node remains below an output threshold. The second transistor is configured to control a large portion of load current above the output threshold. The regulator may also include a current bypass circuit configured to shunt leakage current of the second transistor to ground, away from the sensing circuit.