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You have a bad Freewheel hub solenoid. This is a twin solenoids mounted on a metal base with rubber hoses attached to it. It controls the vacum system that engage the automatic freehubs at each front tire. It is located below the air filter canister (passenger side). Is more easier to view once you remove the air intake hose. Part number is: MB620532 and cost is between $85 to $120 (OEM). Don't know if there is an aftermarket replacement for this part. Good luck!

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Q: 2001 montero sport 4x4 when in 2 wheel drive the four wheel drive dash indicator blinks if you put in 4 wheel drive it stops blinking but once you put back in 2 wheel it starts blinking?
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