I have a 96 xj with a 3 in lift. recently I have been hearing clunking sounds usually when going in or out inclined driveway or large bump more so when turning or at a angle. The sound is similar too what you might hear with a broken sway bar. I have checked rear sways, wheels, all the hardware far has shackles, u bolts, shocks, pertaining too the lift I installed. It was installed over a year ago with out problems till just now. the sound seems too be coming from mid too center rear of the jeep. Is it possible it could be coming from something inside the differential? Any help here would be appreciated. Thanks.

Check the bushings on your lower control arms for wear/play. I had the same symptoms and I thought it was coming from the back too.

Bushings, ballpoint? u joints maybe? Is it when you shift?

I thought LCR's too but those have been replaced. Iam gonna check uppers though next. those are original. I dont think ball joints or u joints I can check those too, but its only when the body seems too move say going in and out driveways etc.

My motor and tranny mounts plus CA bushings were all bad and I had that noise. Not sure which one fixed it but good now.