The process in which neuroblasts acquire specialized structural and/or functional features that characterize the mature Lugaro cell. Differentiation includes the processes involved in commitment of a neuroblast to a Lugaro cell fate. A Lugaro cell is an inhibitory GABAergic interneuron found in the cerebellar cortex. [ GOC:dgh GOC:cls GOC:dph http://www.ncbi.nlm.nih.gov/pubmed/15157725 http://purl.obolibrary.org/obo/go/references/0000021 GOC:jid ]