Can someone tell me what the sensor circled in red is? The reason I’m asking is I’m in the process of replacing the transfer case out of my 92 XJ and the transfer case does not have the sensor in question. Any help would be greatly appreciated.

 

That's for your 4x4 lights on the dash.

 

I’m guessing I couldn’t swap the housing and call it good?

 

To swap the front housing on the low range you have to disassemble the whole transfer case

 

Which transfer case is the one out of your 92 and what year is the replacement transfer case? It looks like they both have the sensors for the 4x4 lights one just has it on the back of the case, you should be able to splice the pigtail and plug into your harness so the 4x4 lights will work.

 

The second picture is the one that came out of the Cherokee it came out of a 92. The first picture is the transfer case I picked up at a salvage yard it was a 93.