SOURCE: 4wd problem
While you have a helper try to shift to 4x4, get under the truck and tap the shift motor with a mallet.Sometimes the shift motors stick if they haven't been used in a while. If this doesn't work you might have to replace the transfer case shift motor.
SOURCE: I have an '02 gmc yukon, stuck in 4 low.
Check for a blown fuse. use your manual to find fuse location. you can remove the shift motor and engage it manually, you need to remove front driveshaft.
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It was the transfer case motor (encoder motor) the sensor ring goes bad. I have had to do it again already there is a computer flash from GM that I would assume should keep it from having to be changed as frequently just haven't gone to the trouble. There are several write-ups and a You Tube video if you want to try yourself. Not that bad of a job and it CAN be done without taking out the driveshaft out.
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