Have a 91 Cherokee 4.0 2 door. It's been sitting for probably like 5 years. Bought it for a steal and put a bunch of new parts on it. I noticed a pretty bad oil leak dripping off the bell housing, but runs down the outside of the cover. Could this be the rear main? It's dripping on the exhaust and smoking. Also the trans pan has some drips on it too, idk if it's running back. I replace the valve cover gasket. The oil filter does look like it leaking. Could that cause such a leak? Just looking for some opinions thanks!

 

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If you think it is leaking near the filter area, it could be 1 or 2 of 2 things. It could be because your oil filter seal has gone bad, or is not tightened to spec, or (correct me if I'm wrong here) the oil filter adapter may be leaking, those O-rings have a tendency to go bad on you sometimes.

 

Oil pan gasket can cause that too. My exhaust looks EXACTLY like that. Just changed mine this weekend along with a new pan and rear main. Figured since I had the pan off might as well change the RMS while it's off. Check the oil pan gasket around the back of the engine. Possible the pan may be rusted and leaking out of a small hole in the side.

 

It also could be leaking from the rear of the valve cover. What type of gasket did you use? The rubber type is much better than cork type.