Why does the transfer case four wheel drive gear shift pop out of four wheel drive on my 1989 S10 pickup?

The reason the light is flashing constantly is because the vehicle is sensing that four wheel drive(4WD) is not working. These 4WD systems use vacuum from the engine to engage/disengage to front axle. The vehicle probably has no vacuum going to the front axle, which would not allow the 4WD shift to complete, which would then leave the light on the dash flashing.
First thing to check is that the vacuum actuator on the firewall is working as it should.

Which of these does your vehicle have ?

Transfer Case - NVG 233-NP1 (Two Speed Selectable)
Transfer Case - NVG 136-NP4(One Speed Automatic)

The New Venture Gear NV233 is an electronic shift transfer, with the following three modes of operation, Two-wheel drive high range, Four-wheel drive high range, Four-wheel drive low range. The gear reduction for low range is provided by a planetary gear set. The floor-mounted shifter has been eliminated. A switch, located on the upper right side of the instrument panel, is used to select the operating range. The indicator lamps on the switch show the current mode of operation. When the four-wheel drive has been selected, the four-wheel drive indicator lamp on the switch is designed to turn on when the front axle has engaged.


Automatic Transfer Case
The single speed automatic transfer case system shifts automatically from rear wheel drive to four wheel drive when the transfer case shift control module (TCSCM) senses the difference in rotation speed of the front propeller shaft and the rear propeller shaft . Two vehicle speed sensors, one located at the rear output shaft area of the transfer case, and the other, located at the front output shaft area of the transfer case, send front and rear propeller shaft rotation speed information to the TCSCM.
When the front and rear output shaft rotations remain the same, the TCSCM sends pulse width modulation signals to the encoder/motor to keep the transfer case in rear wheel drive. When the front and rear output shafts rotations are different, the shift control module sends pulse width modulation signals to the encoder/motor to engage the transfer case into four wheel drive.
The system will automatically transfer a percentage of torque to either the front or rear axles as required to stop all wheel slip. When the front and rear output shafts rotations return to the same speed rotation, the shift control module sends pulse width modulation signals to the encoder/motor to position the transfer case back into rear wheel drive.
When the transfer case is engaged into four wheel drive, a lamp indicator on the instrument cluster will light. The automatic transfer case system is completely automated, no transfer case control button switching system is required.

Do you know what diagnostic trouble code's are ?

DTC C0300 Rear Speed Sensor Malfunction
DTC C0305 Front Speed Sensor Malfunction
DTC C0308 Motor A/B Circuit Low
DTC C0309 Motor A/B Circuit High
DTC C0310 Motor A/B Circuit Open
DTC C0315 Motor Ground Circuit Open
DTC C0374 General System Malfunction
DTC C0376 Front/Rear Shaft Speed Mismatch
DTC C0550 ECU Malfunction
DTC C0611 VIN Information Error
DTC C0895 Device Voltage Malfunction

Not OBD2 engine code's .

Which do you have ?
Transfer Case - NVG 236 (Two Speed Automatic)
Transfer Case - NVG 233-NP1 (Two Speed Selectable)
The NV236 transfer case is an automatic transfer case with three drive ranges. Shifting from rear wheel drive to four wheel drive is done automatically when the transfer case shift control module receives wheel rotating slip information from the speed sensors. The transfer case shift control module then engages the transfer case motor/encoder to position the transfer case from rear to four wheel drive. When the transfer case shift control module receives information that the wheel rotation is the same on both axles, the transfer case shift control module sends position information to the motor/encoder to put the transfer case back into rear wheel drive. The three drive ranges are 2HI, 4HI, and 4LO. The 2HI position is for normal driving with the rear wheels pushing the vehicle. The 4HI, position is for driving through sand, snow, mud, gravel, or heavy rain at normal or slightly below normal speeds. The 4HI engages the front axle to allow for four wheel drive. The front axle is pulling the vehicle, and the rear axle is pushing the vehicle. The 4LO range is used for off road driving, heavy snow, deep mud, or shallow fording. The 4LO is similar to the 4HI except that the gearing in the transfer case is set for low speed and high torque. The NV236 is manufactured at Syracuse New York by New Venture Gear a division of New Process Gear for General Motors.
Is the switch light on or flashing ? If you have automatic 4x4 there are several DTC'S that can set >
DTC B2725 ATC Mode Switch Circuit Malfunction DTC C0300 Rear Speed Sensor Malfunction DTC C0305 Front Speed Sensor Malfunction DTC C0308 Motor A/B Circuit Low DTC C0309 Motor A/B Circuit High DTC C0310 Motor A/B Circuit Open DTC C0315 Motor Ground Circuit Open DTC C0323 T-Case Lock Circuit Low DTC C0324 T-Case Lock Circuit High DTC C0327 Encoder Circuit Malfunction DTC C0362 4LO Discrete Output Circuit High DTC C0367 Front Axle Control Circuit High DTC C0374 General System Malfunction DTC C0376 Front/Rear Shaft Speed Mismatch DTC C0387 Unable to Perform Shift DTC C0550 ECU Malfunction DTC C0611 VIN Information Error

Have you checked the engine and transmission mounts?? If these are loose they could easily shift causing the linkage to kick it into another gear.

Most of these I have seen were Electronically shifted, if that is the case you might have a sensor problem in the cab, or a wiring issue.

Which of these does your vehicle have ?
The NVG 233 transfer case features a 3 button shift control switch, located on the instrument panel.
The NVG 236 transfer case features a 4 button shift control switch located on the instrument panel.
Do you know what DTC'S - diagnostic trouble codes are ? Both of these 4X4 systems can set DTC'S , Having a professional or factory scanner is what is needed to check for these codes . Not a OBD 2 code reader or autozone , advance etc... The four button system can set a bunch of them .
DTC B2725
DTC C0300
DTC C0305
DTC C0308
DTC C0309
DTC C0310
DTC C0315
DTC C0323
DTC C0324
DTC C0327
DTC C0362
DTC C0367
DTC C0374
DTC C0376
DTC C0387
DTC C0550
DTC C0611

The NVG 233 transfer case features a 3 button shift control switch, located on the instrument panel. When the ignition is in the RUN position, the transfer case shift control module starts monitoring the transfer case shift control switch, to determine if a new mode/gear position has been selected. At a single press of the transfer case shift control switch, the lamp of the new position begins flashing to inform the driver that the transfer case shift control module has received the request for a new mode/gear position. The lamp continues to flash until all shifting criteria has been met and the new mode/gear position has been reached, or has engaged. Once the new mode/gear position is fully active, the switch indicator lamp for the new position remains ON constantly.
The NVG 233 transfer case provides the driver with 3 manual mode/gear positions:
• 2HI - 2 Wheel Drive high range
• 4HI - 4 Wheel Drive high range
• 4LO - 4 Wheel Drive low range
Any of these mode/gear positions may be selected while driving the vehicle. However, the transfer case will not allow a shift into, or out of, 4LO unless the following criteria has been met:
• The engine is running.
• The automatic transmission is in Neutral, or the clutch pedal is applied on manual transmissions.
• The vehicle speed is below 5 km/h (3 mph).


Finding out what if any codes are stored should be your first step .

have truck running,,put shifter in neutral,,shift into high lock 4x4,then put truck into gear,,u can shift from high lock to high gear,,from two wheel to four wheel,,in high only,,if u want to shift transfer case in low,,u have to put truck in ,,neutral,,first,,

sounds like either a fuse or the do u have locking hubs that need to be engaged also when using 4 wheel drive there is actually only 2 wheels turning usually passenger front and driver back sometimes u also have to drive backwards to engage and also disengage 4 wheel drive finally it may be a transfer case problem check drive shafts and u joints make sure they are engaged

ok, while stopped put car in neutral, shift transfer case lever to 4high or 4 low whichever you prefer, and voila put it back in drive and your now in 4x4

Hi. I suspect a failing shift motor as well but, it will serve you well to completely replace the transfer case. due to the malfunctioning shift motor, there may be some stripping that has occurred during the duration. I recommend replacing the transfer case and wires just to be safe if possible.

Please rate and god bless:)

something has broke inside the transfer case keeping it from going into any other gear