Are you in four wheel low or four wheel hi. if you are in four lo, put vehicle in neutral before trying to shift out and be at a complete stop. if you were in four hi, put vehicle in reverse and keep backing up, usually 4wd while come out and go back into 2wd
SOURCE: 1993 jeep grand cherokee laredo 4 wheel drive
I'm not absolutely sure on the tire size for the jeep itself, but I think they are 225/65/R15's. Not absolutely sure.
As for the noise, from your explanation, it sounds like the transfer case is under a heavy bind. Take it off of the road in some grass or dirt and then move it forward a few feet then simply hit reverse. Don't move much maybe an inch and it may release the bind. Once you get the bind off the transfer case, it should slip out of 4wd, unless there is damage in the case/shifter itself.
When operating four wheel drives, with tires of different sizes it causes extreme stress on the gearing in the transfer case. Larger tires don't turn the axles as much as smaller tires. So, this causes stress in the driveline as the front is actually turning slower then the rear. In turn, this will put so much pressure on the gears that it could cause damage and the shifting mechanism will not work correctly to pull it out of 4wd engagement.
Try those ideas, and see if you can get it out of 4WD. Definitely put four tires on the jeep that are all the same size. This will keep you from having excessive stress on the transfer case and gearing therein.
I hope this helps out buddy.
SOURCE: Jeep Wrangler 1998 Sport Four Wheel Drive stuck in high
Try putting the car in neutral first. Try going in reverse while shifting out of 4wd.
SOURCE: Service 4 wheel drive
The service 4 wheel drive light comes on because there's a problem. The biggest causes of this I've seen are a software glitch in the final drive control module which the dealer can fix by reprogramming and the other is usually the electric actuator on the front axle housing. The only light that comes on by a timer is the one that says, "perform service" in your overhead console or odometer.
SOURCE: 1999 jeep grand cherokee all time four wheel drive will not engage
Sounds like the splines on your transfer case gear are ground down
SOURCE: free 1997 Jeep Grand Cherokee repair manual My
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