Transfer Case Clunk during Acceleration and Deceleration

WARNING: This page is about a different car, the 2002 GMC Yukon XL, 2002 GMC Yukon, 2002 Chevrolet Tahoe, 2002 Chevrolet Suburban, and 2002 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 . Fill the transfer case to the correct fluid level, if required. Inspect the transfer case for the correct type of fluid. Flush the transfer case, and fill with the correct fluid, if required.
Excessive clearance between the slip yoke and the rear output shaft	Inspect the slip yoke splines for wear. Inspect the rear output shaft splines for wear. Replace the slip yoke if it is faulty. Refer to PROPELLER SHAFT REPLACEMENT - ONE PIECE . Replace the rear output shaft if it is faulty. Refer to Transfer Case Disassemble and Transfer Case Assemble in Transmission, Transaxle Unit Repair Manual.
Excessive clearance between the slip yoke and the rear bushing	Inspect the rear bushing for visible signs of wear. Inspect the slip yoke bearing journal for wear. Replace the slip yoke if it is faulty. Refer to PROPELLER SHAFT REPLACEMENT - ONE PIECE . Replace the rear bushing if it is worn. Refer to Transfer Case Output Shaft Seal Replacement - Rear .