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My 1998 explorer 5.0 did the same thing, i noticed the light flashing, then noticed that it hadnt shifted into overdrive. so i pressed the overdrive button *located on the end of shifter* it then shifted into overdrive and the light shut off. This happens easily, the button is very sensitive, the slightest touch even from shifting from Park to Drive can activate it. The button is for towing or hauling so you will substain torque and speed. hope this helps, write back if you still need help.

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Q: What do you do about the flashing overdrive light that comes on while you are driving in your 1996 ford explore Eddie Bauer?
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