I just recently replaced the transfer case on my 04 suburban z71 with a remaned one. Everything’s been working great, but today I crawled underneath of her to inspect it and make sure nothing was leaking, only to find what appear to be very dark, dirty oil leaking from the front output shaft area. Does this appear to be due to a leaky seal on the transfer case? Perhaps the boot shown needs to be replaced? Is there something else that could be leaking in that area? I don’t understand how the oil could be as dirty as it is. I just filled it with autotrak 2. Any help would be appreciated

 

Welcome to the forum. Hopefully someone will chime in with some suggestions for you.