Transfer Case Jumps Out of Gear

WARNING: This page is about a different car, the 2004 GMC Sierra, 2004 GMC Cab & Chassis Sierra, 2004 Chevrolet Silverado, and 2004 Chevrolet Cab & Chassis Silverado. 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. Review the Symptoms - Transfer Case and perform the necessary inspections.
Melted high/low range shift fork pads	Replace the high/low range shift fork pads or other damaged components. Refer to Transfer Case Disassemble and Transfer Case Assemble in Transfer Case - NVG 263-NP1 Unit Repair.
Faulty high/low range shift fork	Inspect the high/low range shift fork for being damaged. Refer to Cleaning and Inspection in Transfer Case - NVG 263-NP1 Unit Repair. Replace the shift fork if faulty. Refer to Transfer Case Disassemble and Transfer Case Assemble in Transfer Case - NVG 263-NP1 Unit Repair.
Faulty high speed teeth on the range sleeve	Inspect for the following conditions: The input gear high speed engagement teeth for wear or damage The engagement teeth on the range sleeve for wear or damage Refer to Cleaning and Inspection in Transfer Case - NVG 263-NP1 Unit Repair. Replace the range sleeve if the teeth are faulty. Refer to Transfer Case Disassemble and Transfer Case Assemble in Transfer Case - NVG 263-NP1 Unit Repair. Replace the input shaft if the input gear engagement teeth are faulty. Refer to Transfer Case Disassemble and Transfer Case Assemble in Transfer Case - NVG 263-NP1 Unit Repair.
High/low range shift fork bushing and springs	Inspect the high/low range shift fork springs for being faulty. Inspect the range fork shaft bushing for wear. Refer to Cleaning and Inspection in Transfer Case - NVG 263-NP1 Unit Repair. Replace the high/low range shift fork if the springs or bushings are faulty. Refer to Transfer Case Assemble in Transfer Case - NVG 263-NP1 Unit Repair.
High/low planetary carrier	Inspect the high/low planetary carrier for the following conditions: Low speed engagement teeth worn or damaged Cracked carrier housing Pinion gear worn or out of position Pinion gears broken or damaged teeth Pinion gears seized Refer to Cleaning and Inspection in Transfer Case - NVG 263-NP1 Unit Repair. Replace the high/low planetary carrier if any of the above conditions are found. Refer to Transfer Case Disassemble and Transfer Case Assemble in Transfer Case - NVG 263-NP1 Unit Repair.
2/4 Wheel drive synchronizer gear	Inspect the 2/4 wheel drive synchronizer gear for worn engagement teeth. Replace the synchronizer gear if faulty. Refer to Transfer Case Assemble in Transfer Case - NVG 263-NP1 Unit Repair.