So I did a lot or searching on this, but couldn't find a problem exactly like mine. 95 4.0 auto. 172k. Had it for around a month now.

Transmission seemed to shift fine, a little sloppy but nothing bad. First time I went wheeling with it it seemed to lose power all of a sudden. Well I figured out it wasn't downshifting to first. Even when I would put it down into 2-1 nothing. If I would restart the Jeep it'd be good again for a while or all of the trip. Did it every now and then and I changed the fluid because it was pretty nasty. Shifted and just drove smoother afterwards and didn't seem to do it the next couple times we went.

Well tonight I went into a parking lot with snow and just did a quick donut in 2wd shifting up to third gear. Went to come out of the parking lot and stuck in 2nd. Drop it down and still doesn't go to first. Restart it and pop it back in drive and good to go.

Most of the things I read about this says that they can put it in 2-1 and it will downshift but now mine. But when the transmission is acting normal 2-1 acts just like it's supposed to keeping it in 1st and 2nd gear.

Should I change the solenoid first and go from there or?

 

If you did one drain and refill you didn't get even half the fluid changed. Repeat it a couple of times. Did you use Dex/Merc? (not ATF+)
Ever checked the TV cable adjustment?

 

Didn't check TV but wouldn't make sense that it would do it random like that I wouldn't think . Plus it wouldn't explain the no manual downshift.

Did one flush with dextron but did it multiple times in one sitting. Probably drained around ten dirty quarts out or so.

 

Ever seen a check engine light? If so, gotta retrieve codes.

Don't forget about the "throttle position sensor", which is directly involved in shifting characteristics of the AW4 transmission.

The fact that it gets better, at least for a while, when you turn the engine on and off speaks to electrical.

And I don't disagree that a solenoid is also a possibility.

 

Nope no cels. I'm gonna try the tps because it does have some weird surging that my other two don't have when letting off the gas.