I was working on my Jeep when I noticed fluid leaking from the plug on the differential cover. Can I put teflon tape to make it stop leaking or will the gear oil eat away at it?

 

go ahead and use teflon tape. that stuff is impervious to just about anything. about two wraps wrapped in the direction of the threads, then snug it up nicely. wipe the area down well prior to removal. good time to check the level too. good luck

 

i always use some black rtv on the threads whenever i do a diff fluid change.
did one today, actually.
but teflon should work, i guess.

 

actually, you are doing the same thing i did to my front diff cover, lol. it's been a year and a half since i've done anything to it, and it's still holding up. i'll probably change to a Riddler cover later once i get it lifted and start wheeling it. until then, it keeps the good in and the bad out.

 

1) Check and make sure it's not a rubber bung plug - if it is, just replace the thing.

2) If it's a regular pipe plug, it may be rusted. Replace with a brass piece (3/8" NPT, IIRC. Any hardware store should have them) and apply PTFE paste to the threads prior to installation.

Problem solved. If you did get saddled with a rubber bung plug cover, see about replacing the cover with a threaded one so you can use the pipe plug instead.