I had the same problem with my 1995 explorer xls. And everyone told me I needed a new transmission. I got on the internet and found a solution.
When Your overdrive light flashes. You need to see if your tranny has a place on the outside to adjust the bands on the inside. This helped mine no more problems.
Hope this helps.
When the overdrive light blinks that means a malfunction has been detected - get it checked out
it has a malfuction so its setting a code
A malfunction has been detected - get it checked out
When the overdrive off light is blinking that means a malfunction has been detected
A malfunction has been detected
Transmission Problems, you shouldn't be driving with this on!
The overdrive off light flashing - indicates a malfunction has been detected
The OD light flashing is an indicator of an electrical failure in the transmission. Get it fixed now or replace the tranny later.
The computer has detected a fault in the airbag circuit.
Normally the overdrive is allowed so you will not see the light If you have shut off the overdrive the O/D OFF light will be lit up in your dash
Is door ajar light on also?
The overdrive off light will flash in your gauge cluster when a malfunction has been detected by the powertrain control module