Transfer Case Clunk during Acceleration and Deceleration

WARNING: This page is about a different car, the 2004 GMC Sierra and 2004 Chevrolet Silverado. 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 - One Piece or Propeller Shaft Replacement - Two Piece 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 - One Piece or Propeller Shaft Replacement - Two Piece in Propeller Shaft. Replace the rear bushing if worn. Refer to Transfer Case Output Shaft Seal Replacement - Rear .