The Cassini state equilibrium associated with the precession of the Moon predicts that the mantle, fluid core, and solid inner core precess at different angles. We present estimates of the dissipation from viscous friction associated with the differential precession at the core‐mantle boundary (CMB), Qcmb, and at the inner core boundary (ICB), Qicb, as a function of the evolving lunar orbit. We focus on the latter and show that, provided the inner core was larger than 100 km, Qicb may have been as high as 1010–1011 W for most of the lunar history for a broad range of core density models. This is larger than the power required to maintain the fluid core in an adiabatic state; therefore, the heat released by the differential precession at the ICB can drive a past lunar dynamo by thermal convection. This dynamo can outlive the dynamo from precession at the CMB and may have shut off only relatively recently. Estimates of the magnetic field strength at the lunar surface are of the order of a few μT, compatible with the lunar paleomagnetic intensities recorded after 3 Ga. We further show that it is possible that a transition of the Cassini state associated with the inner core may have occurred as a result of the evolution of the lunar orbit. The heat flux associated with Qicb can be of the order of a few mW m−2, which should slow down inner core growth and be included in thermal evolution models of the lunar core.