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Absolutely. If a vehicle shares fluid between the transfer case and rear diff, the flow will be interrupted if the transfer case goes bad. A fluid pump failure would cause the flow of oil to be cut to both components thus causing a failure. Also, if there is not adequate vacum pressure for the pump system to work, oil cannot be pumped to the rear of the car causing a diff failure.

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Q: Could a bad transfer case cause the rear diff to go bad?
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