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Naturaly, if it is leaking, the seal may need replacing. But not always. The main thing you want to protect is the pinion bearing. Sometimes the main nut gets loose and allows the seal to leak. Ford has had this same problem all the way back to 1950 models. The whole problem is that the pinion bearing needs grease. The seal holds the grease in the differential. Of curse, I mean of course the pinion bearing is in the differential ahead of the seal. It needs grease and it needs proper tightening. And so if the leak is caused by the main differential nut being loose, tighten it good and tight with a socket that fits properly. Use a breaker bar and come down on it. You will know when it feels tight. I'd put at least 60 ft lbs on it.

If you find that the differential nut is tight, and it it leaking grease, most likely you will have to replace the seal. A new seal is pre-loaded at the factory and will take quite a bit of pressure to collapse it. I think it is somewhere in the neighborhood of 250 ft lbs to collapse it. And then go to mfg suggested spec lbs to tighten the nut.

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Q: How do you know when you need to replace the differential seal on a mercury mountaineer?
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