Hello, I have a 1992 Jeep Cherokee Laredo. 4x4, 4.0L. Last week on my way home from work if down shifted on it's own (I was doing around 60MPH so it scared the mess out of me). After it down shifted it shifted in and out of OD while I was driving, eventually (After a red light) I had to manually shift it and it wouldnt go past 3rd gear. I made it home and checked the tranny fluid and it was a cream/pinkish color indicating water in the tranny.

I dropped the pan and checked the magnets and there where no metal shavings so I was relieved. I replaced the filter and fluid and tested it. I can go in reverse and 1st. It will not shift out of 1st gear no matter the RPM. So I dropped the pan again and dropped the valve body. I cleaned it out and up in the tranny. Made sure it was all clean, put it all back together, filled it with fluid... and still the same. It wont shift out of 1st gear. Could it be something simple? Or is my tranny shot?? Please help. Thank you.

when you checked the valve body, did you check the springs? if not try that, also, it could be that your bands are slipping. when you filled up the tranny with fluid, did you try running her through all gears (even if it didn't shift) and recheck the fluid level? or yes maybe your tranny is pooched

Did you try starting out in 1st gear and then trying to manually up shift it one gear at a time? If not, try it. If it shifts fine like that, then your tranny is fine and you have a TCU problem.