Jeep XJ transfer case leaking? How To Fix It Fast!

Jeep XJ transfer case leaking

An image of a transfer case leaking - Jeep XJ transfer case leaking
Jeep XJ transfer case leaking | Photo Credits: Jeep Forum


The transfer case divides the power from the transmission to the front and rear wheels of your Jeep XJ. This component contains its own fluid.

Therefore, if the fluid leaks, it will be unable to lubricate the internal components of the transfer case, resulting in wear and overheating.

If you observe any leakage beneath your Jeep XJ, it is imperative to promptly address and repair it.

Continue reading this article to gain insights into diagnosing and resolving transfer case leaks in the Jeep XJ.


Why Does The Jeep XJ Transfer Case Leak?


Leakage in the Jeep XJ transfer case can stem from various factors, but often arises from worn-out or damaged seals located on the yoke where the driveshaft connects to the transfer case.

As these seals age, they may dry up, wear down, or break, leading to fluid leakage.

This can result in vehicle overheating and potential damage to the transfer case itself.


How To Fix The Leaking Jeep XJ Transfer Case?


If the culprit is a worn-out or broken seal, follow these straightforward steps to replace it and prevent further leakage:

Step 1: Ensure the vehicle is in neutral and securely block the wheels. Then, elevate the vehicle using a jack stand. Proceed to disconnect the driveshaft on one side, which is connected to the output yoke. Utilize an 8mm wrench to remove the four bolts securing the driveshaft.

Step 2: Attach the inch and eighth half-inch drive sockets to a power tool. Employing the tool, remove the yoke nut. Once the nut is removed, detach the yoke to access the gasket. Set aside the gasket for later use.

Step 3: Employ a seal puller to extract the seal, allowing it to separate easily from the transfer case. Subsequently, use a dry towel to clean the splines.

Step 4: Prior to installing the new seal, thoroughly inspect the yoke flange machine surface. It should be polished, and any cracks should be addressed to prevent premature seal damage.

Step 5: Apply a small amount of grease to the inside of the garter spring for proper installation. Additionally, grease the yoke flange. Position the seal and apply slight pressure with your hand to ensure it remains straight. Then, place a bearing race with a minimum of 2-inch holes over the seal and gently tap it with a hammer to secure the new seal onto the housing surface.

Step 6: Clean the previously removed gasket and reattach it. Apply RTV (room-temperature vulcanizing) silicone sealant around the shaft. Reinstall the yoke and driveshaft with the transfer case. Allow 24 hours for the RTV to settle in position before driving the vehicle.

Should the seal replacement fail to resolve the issue, seeking professional assistance is advisable.



Can You Drive With A Leaking Transfer Case?


Whether you can continue driving the vehicle depends on the fluid level.

If the transfer case has just started leaking and there is still fluid present, it may be safe to drive.

However, if all the fluid has escaped, the transfer case’s inner parts will not be adequately lubricated, causing the vehicle to fail in shifting power into four-wheel drive.

In such a situation, it is necessary to pull over to the roadside and address the issue promptly.


How Long Should A Transfer Case Seal Last On Jeep XJ?


The transfer case fluid should be changed every 30,000 miles to maintain optimal lubrication of its inner components.

During fluid changes, it’s advisable to inspect the seal for any signs of cracks or damage.

Typically, transfer case seals are expected to last for over 85,000 miles before requiring replacement.


Frequently Asked Questions


Why Is My Transfer Case Covered In Oil?


In some instances, progressive wear of internal components within the transfer case can lead to an oil leak.

This is particularly common in high-mileage transfer cases that have endured extensive use.

Such problems often manifest when there is play in either the input or output shaft bearing.



What Happens If Transfer Case Oil Is Low?


Difficulty changing gears and unexpected disengagement from four-wheel drive can be symptoms of low or contaminated transfer case fluid, which can impair your transmission’s gear-shifting abilities.

Additionally, as the transfer case fluid loses its lubricating properties over time, it can lead to increased friction within the system, resulting in loud noises while driving.




In conclusion, addressing transfer case leakage in your Jeep XJ is crucial to prevent wear and overheating of internal components.

If you notice any leakage, prompt repair is necessary to maintain proper lubrication.

By following the provided steps for fixing a leaking transfer case and maintaining regular fluid changes and seal inspections, you can ensure the longevity of your vehicle’s transfer case.

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