I had trouble towing a 96 grand Cherokee with the NP 249 transfer case, after 20 feet or so the rear wheels would lock up. I had it in neutral, the transfer in neutral also. I had to remove one of the drive shafts.

 

Safest thing is to pull a driveshaft. It should only take you ~5 mins to pull either of the shafts out, and you have the peace of mind of not screwing your t-case up

 

Aren't there some cases that leak if the rear drive shaft is pulled off the slip yoke?

 

Read the owner's manual.

 

The guy probably doesn't have an owners manual, that's why he's asking. when I pulled mine I think I pulled the rear. I don't remember any tranny fluid leaking or I may have put something over it to stop it. I really didn't care, at the time the engine was blown,i had just bought it, and I knew it would all need work. I have pulled my 4.0 jeep many times, it has the NP 242 transfer though. I haven't been inside either or seen how the gears are inline, but I suspect the viscous coupling, which makes the 4X4 lock in from heat and pressure build up from the coupling itself slipping when the front and rear drive shafts do not match rotation speed, was causing it to lock up, it did try to run off the front of the tow dolly, the straps held it though. I would have thought the viscous coupling would not have been inline still, who knows, maybe my transfer case is broke somehow? It works now, but maybe without engine power it never really shifted out of gear inside when I was towing. I haven't tried it again since its been running, to much of a hassle, lol. I don't have an owners manual either, I may have a chiltons somewhere, I never thought to look to see if towing with a dolly would be in it. Anyway that's my experience, and I'm sure I did not just let tranny fluid run all over the road, I'm against pollution as much as I can be.

 

Normally I would have pulled the front, but being in the street and on the dolly, I just did what was quickest.