DEFINITION: An occasional drop of lubricant leaking from the splined yoke is normal and requires no attention.

The slip yoke barrel is burred, nicked, corroded, or worn or the welch plug is leaking.

1. Inspect the slip yoke for burrs.

Minor burrs can be removed by careful use of crocus cloth or fine stone honing.

2. If the is badly burred, corroded or worn, or the welch plug is leaking replace the yoke. Refer to Universal Joint Replacement - Nylon Injected Ring or Universal Joint Replacement - External Snap Ring .
3. Replace the oil seal. Refer to one of the following:

•	Rear Output Shaft Seal Replacement for the NVG 126-NP4 transfer case

•	Rear Output Shaft Seal Replacement for the NVG 226-NP8 transfer case

•	Propeller Shaft Front Slip Yoke Oil Seal Replacement for the 4L60-E transmission

There is a faulty transmission or transfer case output shaft oil seal.

Replace the oil seal. Refer to one of the following: