DEFINITION: An occasional drop of lubricant leaking from the splined yoke is normal and requires no attention.

The slip yoke barrel is burred, nicked, corroded, or worn or the welch plug is leaking.

1. Inspect the slip yoke for burrs.

Minor burrs can be removed by careful use of crocus cloth or fine stone honing.

2. If the is badly burred, corroded or worn, or the welch plug is leaking replace the yoke. Refer to Yoke Replacement.
3. Replace the transfer case rear output shaft seal. Refer to Rear Output Shaft Seal Replacement.

There is a faulty transmission or transfer case output shaft oil seal.

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