I have a 1996 XJ. The transfer case stopped working. After further diagnosis, I found out that the dash light doesn't work now either. The transfer case only works in 4-low and made a horrible noise when shifted into the other gears. I drained the fluid, and it was black and burnt. So I removed it and visually inspected it. I manually shifted it through the gears and the shafts seemed to behave how they should.

I reinstalled it and changed the fluid with new ATF+4. I reinstalled it without the shifting linkage so I could rule that out also. After reinstalled, it quit making noise when I manually shifted it through all of the other gears but still doesn't work outside of 4-low, however, when the transmission is in reverse, the transfer case made noises again when outside of 4-low.

I'm at a loss as to what is going on and just want some further guidance before I take it back out and open it. I can probably rebuild it just fine, I mean it's pretty small and simple, but I want to see if it could possibly be anything else before tearing it open, making a large purchase, and being a rebuild kit. Thanks!

 

Well unfortunately you're going to have to go inside to see what came apart. You might be better off going to car-part.com to find a temporary replacement while you fix that one. I say this because a standard rebuild kit usually won't take care of a failure. It's usually only a remedy for bearing or chain noise.

 

I'm actually going through a Pull-A-Part in Augusta right now. In just the first 6 rows I've come across 3 NP242J transfer cases. 2 from ZJs and 1 is in a Liberty. Might be a worthwhile trip?

 

Beware there are different length input shafts. https://www.novak-adapt.com/knowledg...g-input-gears/
The ZJs will likely work, but the Libby might be too long.