Just noticed this black wire that is coming out of the housing at the rear output shaft of the transfer case on my '96. I cant see any place that it should be connected...

 

That should be a Brown wire, its for the electric clutch for "shift on the fly" 4WD

Should be an unhooked wire in the harness that it connected to, brown wire as well

The connector for the shift motor should be 8 pin, but this electric clutch wire was often not pinned in the connector just a separate wire
Shift motor uses 7 wires in the 8 pin connector, 8th was for electric clutch, its not a critical system, 4WD still works without it

If you changed shift motors you had to cut the brown wire if it wasn't pin in the connector

I would disconnect the shift motors plug and see if the brown wire is in the connector, truck side of harness
or if you see it hanging somewhere
You can repin it, transfer case side, or take brown wire out of truck side connector and splice wires together

 

Ok, sounds good. Gives me something to look for. The end of the wire is mangled so I'll check a little closer to see if i can find the other end.....Thanks Ron D!!!