DEFINITION: During acceleration or deceleration, a clunk is heard or felt in the transfer case while in the 4HI range only.

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

Incorrect fluid level or incorrect fluid

Worn high speed teeth on the range sleeve

1. Inspect for worn high speed teeth on the range sleeve. Refer to Transfer Case Cleaning and Inspection in Transfer Case - NVG 246-NP8 Unit Repair.
2. Replace the range collar if faulty. Refer to Transfer Case Disassemble and Transfer Case Assemble in Transfer Case - NVG 246-NP8 Unit Repair.

Worn or missing input gear thrust washers

Inspect for worn or missing input gear thrust washers. Refer to Transfer Case Cleaning and Inspection in Transfer Case - NVG 246-NP8 Unit Repair.

Rear output shaft bearing outer retaining ring

1. Inspect for the following conditions:

•	Properly installed rear output shaft bearing retaining ring

•	Excessive wear or damage to the retaining ring groove in the rear case half

•	Refer to Transfer Case Cleaning and Inspection in Transfer Case - NVG 246-NP8 Unit Repair.

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

2.1.	Replace the rear output shaft bearing outer retaining ring.

2.2.	Replace the rear case half if the retaining ring groove is faulty.

Refer to Transfer Case Disassemble and Transfer Case Assemble in Transfer Case - NVG 246-NP8 Unit Repair.