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The 4wd switch is the
indicator that tells the VIC (vehicle information center) if you are in 4
low or 4 high. Have it replaced, but first check wiring, that more likely the wiring from the switch to the VIC is damaged.
Also, you could have a vacuum leak which would enable the transfer case to not recognize that the switch has been activated.
Let me guess you are having your Vehicle Information Center flash and chime "SERVICE 4WD SWITCH"? I have the same problem with my 95 Jeep Grand Cherokee and after much research I have discovered that the 4WD switch usually is not the problem but instead it is the VIC. From model years 94-98 the VIC ribbon wire is faulty in the VIC itself next time the message pops up tap the front of your VIC and see if it stops the message and chiming. If it does you need to repair or replace your VIC (new from dealership is about $600 - $800 depending on your location and their markup).
As for the location of the 4WD sensor it is located on top of the Transfer Case. It is awkward and difficult to get to.(the switch that is) Crawl under the drivers side of the Vehicle just behind the Drivers door there are three different sensors located on and around the transfer case the one you are looking for is located on top of the transfer case near your 4WD linkage it will have four wires going to the clip but in truth only two of those four wires are actually hooked up.(the extra wires and which ones are hooked up depend on your model of transfer case which you can find out by looking at the identification plate riveted to the back of the transfer case itself. You will need the model number when requesting the part. Unless your particular 4WD switch has Vacuum Lines running to it which you will be able to see) In total there are three different cases associated with the 95 model year Jeep Grand Cherokee. You should be able to identify the switch easily enough. There is another switch that is easier to get to located between the transfer case and the forward drive shaft THAT IS NOT THE 4WD SWITCH and the Speedo is located as the farthest back sensor on the transfer case just before the rear drive shaft. Sometimes just changing the fluid in your transfer case will be enough to get rid of that annoying message on your VIC.
As for my Jeep adding fluid did help a little bit but my VIC took a dump. I replaced it with one from the junkyard for $125 bucks no problems since. There is a way to repair the VIC by removing the front bezel carefully and then removing the 4 screws that hold it in place carefully pull it out of your center console and then disconnect the wire harness from it (disconnect your battery first) then remove the six torque screws from the back of the VIC unit and carefully pull the front face from the back piece you will see a ribbon wire not unlike what is in a computer and then shining a light into the spaces where the ribbon goes to the face look carefully at the solder points if any of them seem discolored or missing (they should look shiny and completely cover the wire they are placed on) just carefully add some solder to these points and put it back together again when you are finished reconnect the wire harness and replace it in the console then reattach your battery and start the vehicle it should work like new. (in my case i lost my temper with it before discovering this simple fix and broke the clear plastic front leaving me with no other choice but to replace it)
Sounds like it is in 4 wheel drive mode. If you have a switch to disconnect the 4 wheel drive it may not be working. If the vehicle is full time 4 wheel drive or computer controlled 4 wheel drive you have most likely a locked in full 4 wheel drive mode situation. Not good on dry pavement.
According to the mechanic who works on my 94 Jeep it's one of three
things: 1) Corrosion on the connector to the switch (which is located
on top of the transfer case). 2) A bad switch. Part cost about $22.00
or, 3) A bad console display. he says they have had a fair number of
console display units fail.
According to the mechanic who works on others 94 Jeep it's one of threethings: 1) Corrosion on the connector to the switch (which is locatedon top of the transfer case). 2) A bad switch. Part cost about $22.00or, 3) A bad console display. he says they have had a fair number of console display units fail