When crusing at 55 my 96 jeep tends to drop out of overdrive and i can get it to pop back in when i slightly eccelerate but then im constantly gaining speed. Also at times my jeep will drop out of gear and go to nuetral.

does ur speedometer read when it goes out? if so replace speed sensor

You need to replace the internal solenoids. Not a hard job. Drop the pan, remove the PWM solenoid, and shift solenoids. PWM is causing this issue. New solenoids will cure it. Kit on eBay is $255. https://www.youtube.com/watch?v=yOABDeJQrAE&vl=en https://www.ebay.com/itm/Ram-45RFE-545RFE-68RFE-Solenoid-Assembly-2004-Up-Dodge-Chrysler-Jeep-Mopar/351629865164?fits=Year%3A2005%7CMake%3ADodge%7CModel%3ARam+1500&epid=1853258599&hash=item51dec5f0cc:g:BI4AAOSwjDZYZrmf&vxp=mtr

that is your torque control shift solenoid

Find the cause of the check eng light and find the cause of the poor mileage.

run the fault codes
the rpms change indicates a ratio change up then back down indicating a TR or VSS problem

This is an improper reading from the input speed sensor.

be 1988 and Im sure it has high miles, sound like worn transmission, transmission flush and replace it with new fluid might help some. get use tranny from a junk yard better and cost lot less than rebuilt. being GM mechanic for many years i see transmission on a truck with 100k tend to have leaks or need rebuilding. again i see some have better luck but rear.

You have overdrive cancel soleniod problem. What it does, when you hit the overdrive buttom it activate the overdrive off and on. You should have it check.

Being automatic, your vehicle selects overdrive when conditions are correct. The programming within the computer is designed to do this, and adjusts other engine functions accordingly. If you disable the o/d, it is possible to gain a bit more performance but more often than not you will be prone to forgetting to switch it back on when its needed. Overall this will hurt your fuel consumption and cost you $. One exception is that on many jeeps, going uphill they tend to stay in o/d too long. Most times you can "downshift" out of o/d by lightly touching the brake pedal.
Simply put, leave well enough alone... You can save more fuel by anticipating stops and coasting, (foot off gas) when approaching a light that is or will shortly be red, and not accelerating hard off stops. Just because someone writes it does not mean it's true!!!

Your overdrive should kick in at about 45mph, pretty much at or about 2000rpm. To see if it engaged, lightly touch the brake pedal and it will disengage.It should also disengage when you mash the pedal down to go into passing gear, and re-engage when conditions "normalize" again. You can tell that it has engaged because the tach will drop a few hundred rpms. If it's not doing this, a simple trans oil change (with filter) may correct the problem. OD is activated by a shift solenoid on the valve body that may be a bit gummed up.
95's show a shift control module on some diagrams I've seen, but not on others. I read this as a possible "half-year change" So you may or not have one. If you do, I'd check that as well!