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It sounds like you need a new actuator. there is two things that lock in when you use 4x4. one is the transfer case and the other is the front diff. the front diff is turned on by an actuator. if you have a problem with the actuator the front axles wont lock in. even though the transfer case is engaged.

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Q: The 4x4 is engaged but does not engage into 4 Hi on your 2000 Silverado Z71 4x4?
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