I have a 2002 4.7L grand cherokee at my shop and the coolant is full of oil but the crankcase is clean.
Head gasket?

 

That's be where I'd start. Do you have equipment to do a pressure leakdown on the coolant system?

I'd do that and if it doesn't hold, pull the plugs and turn it over to see if the coolant is in one of the cylinders.

 

Thanks. I'll try that tomorrow. While I'm at it I'll do a leak down. But it might be in the crank case not the cylinders.
Other than that it runs perfect.

 

sure its oil? I seen some stop leaks make the radiator look oily, could also be tranny fluid froma bad radaiator

 

That came to mind but it smells like motor oil not tranny fluid. But thanks for the heads up.

 

what color is it or is it just the colorful mix stuff. check the heads also when its off.

 

Yup that is a head gasket.

 

I had the same thing with my last jeep,turned out to be a cracked head.

 

Well I know this customer well.
It was a milky brown and oily. It also uses Dex cool.
I drained the system today and nothing was in the coolant just the over flow.

Which makes sense because oil floats to the top and made it's way to the over flow.
For now I cleaned it all out and put it all back together and informed this guy about it to keep an eye on it and see what happens.
Thanks for the responses. We'll see what it looks like on the next oil change.