I was slowing down for a stop sign today using the engine braking (down shifting) and once the trans downshifted into first it did some sort of funky lurch, popped out of gear, and started grinding like I was trying to drop it into park (never did drop the parking pin it just sounded like it wanted to). I put it into neutral, stopped, and pulled away normal in drive and nothing strange happened the rest of the way home.

It doesnt sound like the driveshaft slipping out. Im not sure if the trans mount is still okay but It doesnt look like the one that went bad on my 92 XJ. Im not leaking any trans fluid and all my fluid is still new looking and at the right level. This has only happened once but I have heard and felt unwanted clunking under hard acceleration coming from the transmission or transfer case area.

My Jeep is new to me (2 weeks) and I am still working on getting it in a reliable condition.
1993 XJ
4.0L 205000 miles
AW4
NP231
D30/8.25

Yes I normally shift it myself because the brakes are shot, I was on my way home with new pads and rotors when this happened.

If you have any ideas as to what this could be I am all ears.

Thanks
Matt