Possible transfer case problem

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ChaosAgent

TYF Newbie
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Dec 7, 2013
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My wife and I were driving our 2005 Yukon in Auto 4WD mode, then tried to switch to 2WD. We pulled off and went about 100 feet, and the vehicle lost power. The engine runs but no power was being transferred to the wheels. Switching back to Auto 4 gets us moving again, but we'd obviously like to use 2WD again at some point. When this happens, switching into park produces a short lived grinding noise. Subsequent tries have produced similar results. Any thoughts on what may be causing this?
 

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