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Yes, the block should work. Both are 302 HO roller blocks so that shouldn't be a problem. If you are considering using more of the engine there are a few things to consider.

86 302's use E6XX heads and Mountaineers come with GT40 heads. So if you are dropping the whole long block in expect to have significantly less power. The top end (intakes) of the motor also won't have all the same provisions for sensors and emissions.

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Q: Will a 1986 302 engine block work in a 1998 302 mercury mountaineer?
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