2001 2500hd 4x4 grinds while in 2wd high
 

A new to me 2001 2500hd with a manual shift 261hd I assume. Drives fine in 4hi and 4 lo, but when case is in 2 hi it grinds. The transfer case shifts fine it doesnt grind while shifting just whne the truck is moving forward. I have only shifted while stopped with the clutch engaged, not on the fly. Im wondering does this sound like a transfer case problem or an axle acuator problem? Never had problems with any thing newer than an 87 4x4.

Re: 2001 2500hd 4x4 grinds while in 2wd high
 

My father in law had an 01 2500HD with the 8.1 and 263HD (electric shift version of the 261) case. His did what you are describing and I had to do a full rebuild on the case unfortunately. I’d change the fluid and check it real close for metal.

Re: 2001 2500hd 4x4 grinds while in 2wd high
 

Does the axle actuator disengage in 2wd? I may have had a similar issue with my '90 k1500. The 4wd didn't work one day, after ohming out some wires I replaced the actuator switch in the t-case. I was getting some binding in 2wd, not grinding. The new switch was bad, replaced it again and all was well. I took an ohm-meter to the parts store and tested the new switch there.