there are two senors that could be bad or installed wrong. if you have had your tranny removed for work or a new one installed the relay wire can be put in the wrong way it installs both ways and the rams have it go in a certain direction, also there is a bellhousing sensor that tells the engine what to do thay causes issues if bad.
Transmission Problems, you shouldn't be driving with this on!
If the problem with the transmission is overdrive related it may.
Transmission problem overdrive slip at 45mph what to do
The transmission for the 1996 Chevy 3500 could be jumping from overdrive for several reasons. The transmission could have a vacuum or electrical problem causing it to come out of overdrive. Or, there could be an internal valve problem causing this to happen.
There is a problem with the transmission.
when overdrive button is flashing, it is an indicater that there is a problem with your transmission. it may be a simple problem or it could be a major problem. take it to a transmission shop before you need to be towed into shop
blinking overdrive light indicates a transmission problem. take car to a transmission mechanic
Overdrive might not work on a 1992 Dakota because there is a problem with the transmission. The shift solenoid or a belt is not functioning properly inside the transmission.
An OD sensor determines when your vehicle is in overdrive. If the overdrive light comes on in your vehicle, then there may be a problem with the transmission.
Your transmission is shot. Have a new one installed with a warranty. Just a side note: if you live in hilly or moutainous area, lock it out of overdrive for local driving. Reserve overdrive for interstate highways. When the transmission has to constantly shift up and down it will wear it out prematurely.
The Overdrive Light flashing indicates an internal transmission problem which could be caused by anthiny inside the transmission. Most likely the transmission would have to be removed and taken apart to find the problem.
Problem with the problem with the transmission. Seek professional help.