2007 quadratrac transfer case

IMHO, Jeep/Chrysler hasn't had a great rep for the transmissions within the past 20 years. In most instances, transmissions should last the entire lifetime of the vehicle when cared for properly. Checking fluid levels regularly, as well as following manufacturer service intervals make the difference. Keep in mind that transmission fluid should be changed just like your oil, but on a very different schedule.The Grand Cherokee being a model plagued with transmission problems especially if you have the four-wheel drive "Quadratrac" transfer-case package. I am not sure sure if this is a "maintenance free" (I hate that term) or "sealed for life transmission" and case. If it is, I feel very sorry for you because like many others, you have been mislead. Transmission fluid does in fact have a service life and the fluid certainly takes a beating. Not only does it lubricate your transmission as oil does for an engine, it acts as a coolant, and it is also a hydraulic fluid to assist automatic shifting in the case of automatic transmissions. Transmission fluid should be changed because old fluid loses viscosity and can become "dirty" due to natural surface oxidation of internal parts. Unfortunately, usually by the time a transmission starts "acting up" or starts making noise the damage is already done. If you have an automatic, the whole transmission will have to be redone or replaced. If it is a manual trans its possible certain components can be replaced. I have had a girlfriend and co-worker who both had these Jeeps with automatic and wound up ditching them because of tranny or xfer-case issues. One jeep started having trans problems at 70,000 miles. :-(

Ask someone who knows. Contact a dealership or do some searcing and reading on the web.

From what I have read elsewhere: There is an overflow hose on top of transmission behind engine which actually is from the transfer case. Fluid will drip down onto exhaust and eventually catch on fire. Check transfer case for being overfull by taking the top fill plug out. If transmission fluid runs out, I believe the transfer case input shaft seal is shot and needs replaced. Mine caught on fire. I was lucky to get fire out before truck burnt to the ground. If you continue to drive vehicle at have something to put out a fire!!!!

If you have a quadratrac transfer case (first lever position is high 4wd) Technically speaking it is always in 4wd but the transfer case has a fluid coupler inside of it that reacts to rear wheel slippage and then engages the front wheels. Therefore, if it's working correctly, the front wheels are not engaged under normal driving conditions.
One important thing to know about that unit is that they are very sensitive to changes in tire rolling circumference. Never use two different size tires on either axle or the difference will be "seen" by the transfer case as slippage and it will continually lock and quickly fail. It's not a good idea with "normal" units either but unless the difference is substantial, they generally let you know there is something wrong before they fail. Best is to change all four at the same time.

ENGINE LIGHT ON ? Have it checked for diagnostic trouble codes . Do you know what those are . Take it to a qualified repair shop .

Tire size is critical on any jeep but especially so on ones with quadratrac transfer cases. If you run different size tires it will cause the fluid coupler inside the case to overheat and fail. (big$ to repair)
Don't drive it that way and get a matching set of tires on there asap!!!

FRONT AXLE ± 0.3 L (2 oz.)
C200F
1.7L (57.5 Ounces)
C200FE
1.7L (57.5 Ounces)***
REAR AXLE ± 0.3 L (2 oz.)
C213R
2.07L (70 Ounces)
C213RE
2.24L (75.5 Ounces)***
*Nominal refill capacities are shown. A variation may be observed from vehicle to vehicle due to manufacturing tolerance and refill procedure.
** Includes 0.9L (1.0 Quarts) for coolant reservoir.
***ELSD - add 118 ml (4 Ounces) of friction modifier.
Transfer Case (3.7L Engine)
Mopar® ATF+4 Automatic Transmission Fluid
Transfer Case (3.0/4.7/5.7L Engines)
Mopar® NV 247/245 Transfer Case Lubricant
Transfer Case (6.1L Engine)
Mopar® NV146 Transfer Case Fluid. Usage of other fluid/lubricants is NOT recommended.
Axle Differential (Front-Rear)
Mopar® Synthetic Gear & Axle Lubricant SAE 75W-140 (API-GL5) or equivalent with friction modifier additive.

18 mm or 3/8 drv rachet dex III fluid or gm manual transmission fluid don't use dex VI

The correct fluid for your transfer is dextron/mercon transmission fluid.To check the fluid level,jack up both ends of the vehicle and be sure to support with jack stands.Make sure vehicle is level.If you look at the rear of the transfer case,you will see two plugs,one lower than the other.Remove the lower plug and if fluid runs out it was overfilled,if nothing runs out,stick your pinky finger in the hole and feel for the fluid level.If it needs fluid,remove upper plug and pour in fluid until it runs out the bottom hole.Then replace plugs and lower vehicle

5.7 liter V8 Engine code 2: Fluid capasity: Engine oil with filter 6.6 liter 5W-20,  Cooling system: Total fill 13.7 liter Automatic transmission total fill 13.3 liter Front differential 1.7 liter Rear differential 2.23 liter Transfercase 1.8 liter
4.7 liter Engine code N Fluid capasity: Engine oil with filter 5.7 liter 5W-30 Cooling system: Total fill 13.7 liter Automatic transmission total fill 13.3 liter Front differential 1.7 liter Rear differential 2.2 liter Transfer case 1.7 liter
3.7 liter Engine code K Fluid Capasity: Engine oil with filter 4.7 liter 5W-30 Cooling system: Total fill 10.0 liter Automatic transmission total fill 13.3 liter (W5A580 7.7 liter) Front differential 1.7 liter Rear differential 2.2 liter Transfer case 1.7 liter.
Hope this helps, and good luck.