Transfer Case Clunk during Acceleration and Deceleration

WARNING: This page is about a different car, the 2006 GMC Yukon XL, 2006 GMC Yukon, 2006 Chevrolet Tahoe, 2006 Chevrolet Suburban, and 2006 Chevrolet Avalanche. However, it is still accessible from the selected car via links, so may be relevant.

Cause	Correction
DEFINITION: During acceleration or deceleration, a clunk is heard or felt in the transfer case when it is in AWD mode. Review the Symptoms - Transfer Case and perform the necessary inspections.
Incorrect fluid level or incorrect fluid	Inspect the transfer case for the correct fluid level. Refer to Transfer Case Fluid Replacement . Inspect the transfer case for the correct type of fluid. Flush the transfer case and fill with the correct fluid, if required. Refer to Transfer Case Fluid Replacement .
Excessive clearance between the slip yoke and the rear output shaft	Inspect for the following conditions: Worn slip yoke splines Worn rear output shaft splines Repair or replace the following components if faulty: Replace the slip yoke, if required. Refer to Propeller Shaft Replacement - Rear in Propeller Shaft. Replace the rear output shaft, if required. Refer to Transfer Case Disassemble and Transfer Case Assemble in Transfer Case - NVG 246-NP8 Unit Repair.
Excessive clearance between the slip yoke and the rear bushing	Inspect for the following conditions: Worn rear bushing Worn slip yoke bushing journal Repair or replace the following components if faulty: Replace the slip yoke, if required. Refer to Propeller Shaft Replacement - Rear in Propeller Shaft. Replace the rear bushing if it is worn. Refer to Transfer Case Output Shaft Seal Replacement - Rear .