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If it is flashing, then your vehicle is still in 4 wheel drive. It will drive just fine, the only thing you will notice, is on pavement turning the wheel at slow speeds it will feel like its lobbing in the front end, this is because the front wheels are turning. Bring to Mitsubishi garage and they can tell you if the indicator switch is bad ot an indicator switch.

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Q: You have 2003 Mitsubishi Montero sport when start and driving the automatic transmission 4 wheel light continually flashing It drives and changes gear ok what could be the problem?
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