SOURCE: got a 93 jeep grand Cherokee replace plugs wires
Check spark at plugs. If no spark consider coil.
SOURCE: 1996 jeep grand Cherokee, 4.0L automatic, white
I have a "96 Grand Cherokee 4.0L myself. I have to admit I'm taking a shot here, I haven't heard of this before. I'm thinking you have a lot of miles just like mine, I've got around 250,000, a little lifter noise and an exhaust rattle but I've never had to do any major engine work on this vehicle.
I think it's most likely blow by (pressure getting past the piston rings) is forcing a little oil or maybe moisture up the distributor shaft. If you drive it accross town the engine warms up completely and the heat and spark burn off the oil or moisture. When you only go a couple of blocks it doesn't heat up enough to dry it out and burn it off.
SOURCE: 85 Jeep Cherokee will crank
Check for spark at any of the sparkplugs.If there is no spark at the plug then replace the distributor ignition pickup coil.
SOURCE: 93 jeep grand cherokee wont start
Take 2 screws out of PCM and replace with shorter ones
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