Wanted to throw this out for our fantastic diagnostic team at Jeep Nation. Son went to rescue friend stuck in mud. Son got stuck in mud. Jeep eventually recovered out and had 2 in of mud on hood, top, etc. No doubt hammering reverse and first trying to get unstuck. Here is problem now... When trying to reverse, sounds like transfer case is engaging and throws jeep out of reverse gear. If he trys to go slow and reverse it, makes some nasty sounds. It does drive fine threw all gears, but basically he has no reverse gear to back up. Does any one know someone who does good work on t-case. Might even think about upgrading to the 231 hd.... THANKS for any input...

Is this problem in reverse only when you are in 4 hi, 4 low and 2 hi, or all the time.

if it was the transfer case it would do it forward or reverse. The reverse gear is out in the transmission or the idler gear.