Why is 4 Wheel Drive dash light of 2002 XL-7 blinking?

Answer 1

A blinking light means the 4WD mechanism is not fully engaged or disengaged. Normally it blinks in the time between selecting 4WD with the lever/button, and when 4WD is actually engaged it stays on steady. The 4WD light should go off when 2WD is selected. Try selecting 4WD at a slow speed on a gravel road and shifting back to 2WD again. After selecting 2WD, stop and backup for about 20 or 30 feet, this helps unlock the front axle from the 4WD mode, although in this vehicle you shouldn't need to do this normally. Anyway, if the blinking light remains, then likely there is a broken microswitch (electrical switch) inside the transfer case. The switch controls the dash light, and senses when the internal mechanical parts are in the right position to give you 4WD or 2WD. If the car does not make any strange clunking, grinding or banging noises when you drive around on paved roads, or if the tires are not excessively scrubbing or squealing while making sharp turns in parking lots or the driveway, then the 4WD is disengaging normally, and you have no expensive mechanical problems. The problem is the electrical switch inside the transfer case. Opening a transfer case for any reason is an expensive job, so you have to decide if you want to spend the money, or live with the blinking light.