DEFINITION: A visible indication of an external fluid leak from the transfer case.

Review the Symptoms - Transfer Case and perform the necessary inspections.

Drain plug or fill plug leak

1. Inspect for the correct sealer and the correct amount of sealer on the plugs.
2. Install the plugs correctly. Refer to Transfer Case Fluid Replacement .

Access hole plug leaking

Replace the access hole plug or seal with RTV sealer.

Vehicle speed sensor leaking

1. Remove the vehicle speed sensor (VSS).
2. Inspect for the following conditions:

•	Cross threaded

•	Cut or damaged O-ring seal

•	VSS over tightened causing deformation in the VSS

•	Refer to Transfer Case Speed Sensor Replacement .

3. Replace the VSS O-ring seal if faulty. Refer to Transfer Case Speed Sensor Replacement .
4. Replace the VSS if faulty. Refer to Transfer Case Speed Sensor Replacement .

Rear output shaft seal leaking

1. Inspect for the following conditions:

•	Overfilled or improper transfer case fluid

•	Blocked vent

•	Seal improperly installed, worn or damaged

•	Seal bore damaged or cracked

•	Rear output shaft bushing for excessive wear

•	Slip yoke seal surface for wear or pitting

2. Repair or replace the following components if found faulty:

•	Adjust or replace the transfer case fluid. Refer to Transfer Case Fluid Replacement .

•	Clean or properly route the vent hose.

•	Replace the slip yoke if the surface could cause leakage. Refer to One-Piece Propeller Shaft Replacement or Two-Piece Propeller Shaft Replacement in Propeller Shaft.

•	Replace the rear bushing if worn. Refer to Rear Output Shaft Seal Replacement .

•	Replace the rear case half if the seal bore is damaged. Refer to Transfer Case Disassemble and Transfer Case Assemble in Transfer Case - NVG 263-NP1 Unit Repair.

•	Replace the rear output shaft seal. Refer to Rear Output Shaft Seal Replacement .

Front output shaft seal leaking

1. Inspect for the following conditions:

•	Overfilled or improper transfer case fluid

•	Blocked vent

•	Seal improperly installed, worn or damaged

•	Seal bore damaged or cracked

•	Leaking cup plug in the front output shaft

2. Repair or replace the following components if found faulty:

•	Adjust or replace the transfer case fluid. Refer to Transfer Case Fluid Replacement .

•	Clean or properly route the vent hose.

•	Replace the front case half if the seal bore is damaged. Refer to Transfer Case Disassemble and Transfer Case Assemble in Transfer Case - NVG 263-NP1 Unit Repair.

•	Replace the front output shaft seal. Refer to Front Output Shaft Seal Replacement .

•	Replace the cup plug in the front output shaft if it is leaking. Refer to Transfer Case Disassemble and Transfer Case Assemble in Transfer Case - NVG 263-NP1 Unit Repair.

Shift shaft detent lever seal leaking

Replace the shift shaft detent lever seal. Refer to Transfer Case Disassemble and Transfer Case Assemble in Transfer Case - NVG 263-NP1 Unit Repair.

Leaking at the vent tube

Transfer case to adapter leak

1. Inspect for the following conditions:

•	Loose mounting fasteners

•	Gasket faulty

•	The transfer case input shaft seal leaking

•	The cup bearing in the input shaft leaking

2. Repair or replace the following components if found faulty:

•	Replace the transfer case input shaft seal. Refer to Input Shaft Seal Replacement .

•	Inspect for the following conditions:

-	Seal improperly installed, worn or damaged

-	Seal bore damaged or cracked

-	Input shaft seal surface worn, grooved or damaged

•	Replace the cup bearing in the input shaft if it is leaking. Refer to Transfer Case Disassemble and Transfer Case Assemble in Transfer Case - NVG 263-NP1 Unit Repair.

•	Repair or replace the loose fasteners. Refer to Transfer Case Adapter Replacement .

•	Replace the transfer adapter case gasket. Refer to Transfer Case Adapter Replacement .

Case leaking

1. Inspect for a cracked case or case porosity.
2. Inspect for the oil pump wear sleeve missing and the oil pump wearing a hole in the case. Refer to Transfer Case Disassemble in Transfer Case - NVG 263-NP1 Unit Repair.
3. Replace the faulty case half. Refer to Transfer Case Disassemble and Transfer Case Assemble in Transfer Case - NVG 263-NP1 Unit Repair.

Front case half to rear case half seam leak

Disassemble and seal the case halves. Refer to Transfer Case Assemble in Transfer Case - NVG 263-NP1 Unit Repair.