Transfer Case Grating Noise

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: A faulty internal transfer case component that causes a grating noise in the transfer case while in the AWD, 4HI, or 4LO mode. Review the Symptoms - Transfer Case and perform the necessary inspections.
Broken clutch apply plate	Inspect for a broken clutch apply plate. Refer to Transfer Case Disassemble and Transfer Case Assemble in Transfer Case - NVG 246-NP8 Unit Repair. Replace the apply plate and the transfer case components that are damaged from debris. Refer to Transfer Case Disassemble and Transfer Case Assemble in Transfer Case - NVG 246-NP8 Unit Repair.
Faulty clutch pressure plate bearing	Inspect for a faulty clutch pressure plate bearing. Refer to Cleaning and Inspection in Transfer Case - NVG 246-NP8 Unit Repair. Recondition the transfer case components that are damaged from debris. Refer to Transfer Case Disassemble and Transfer Case Assemble in Transfer Case - NVG 246-NP8 Unit Repair.