Transfer Case Jumps Out of Gear

WARNING: This page is about a different car, the 2023 GMC Sierra 3500 HD and 2023 GMC Sierra 2500 HD. However, it is still accessible from the selected car via links, so may be relevant.

Cause	Correction
DEFINITION: Loss of the transfer case drive torque during deceleration, acceleration or under load or the transfer case jumps out of gear and into a neutral position. Inspect for the correct fluid level. Inspect the drain plug for large metal deposits. Small metal flakes and fine metal dust on the plug magnet are to be considered normal. Review the Symptoms - Transfer Case and perform the necessary inspections.
Transfer case control actuator lever bearing	Inspect for a worn or damaged control actuator lever and/or bearing Replace components as required.
Transfer case Actuator motor brake	NOTE: The actuator motor brake may lead to a will not shift or jumps out of gear condition If the condition is caused by a brake electrical condition, a DTC will be set. If the condition is caused by a brake electrical condition, a DTC will be set. Inspect the electrical system for a properly operating actuator motor.
Rear output shaft snap ring broken or out of position	NOTE: A broken or out-of-positioned rear output shaft snap ring may lead to a will-not-shift or jumps-out-of-gear condition. Inspect for a broken or out-of-position rear output shaft snap ring.
Transfer case shift fork broken or fork pads broken or missing	NOTE: A growl, rattle, or grinding noise that occurs when a shift is commanded may be caused by broken or missing shift fork pads which may lead to incomplete engagement of the high/low clutch teeth. High/Low Shift Components Cleaning and Inspection Replace the shift forks and pads as required. Transfer Case Disassemble (with MYD) , or Transfer Case Disassemble (with MGM, MGU) , and Transfer Case Assemble (with MYD) , or Transfer Case Assemble (with MGM, MGU)