Transmission Fluid in Transfer Case - 2007 Jeep Liberty 3.7 L

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Friar

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Sep 26, 2024
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My 2007 Jeep Liberty has had small leaks from both the transmission and the transfer case, but those small leaks do not occur any more. I check the transfer case level every few months; in October 2024 the level was perfect. I cannot check the transmission fluid level but the shifting is always smooth. Today (May 8, 2025) I removed the plug to check the transfer case fluid, and a stream of red transmission fluid came pouring out, indicating the level was above the top of the hole. Immediately I replaced the plug and lost maybe a cup of red fluid. So I believe a seal between the transmission and the transfer case has failed. However the transmission continues to shift perfectly. Should I just keep driving it? The vehicle has 355,400 km and does not leak or burn engine oil.
 
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