T case keeps popping out of gear and makes a horrible grinding noise. Any thoughts. My checking online seems to be chain slipping on gears or slapping against case sides.

Mike I am sorry to say but those are what I would look into if I had the T-case.

could be a shifter linkage issue

I’d also lean toward linkage. Ever since I got rid of my linkage I have never had this problem.

i’d check the linkage as well. happened to me a while back after lifting my jeep. its a simple adjustment, just google it and try it out.

Agree on the linkage. Not sure why they when mechanical versus cable but what ever the reason it’s a poor design at best. Try playing with the transfer case shifter to see if the noise gets better or worse. You may have to switch to 4 hi so you have room to go forward and backwards with the shifter while driving just stay under 40 while doing this.

Let us know how that test goes.

I went thru this crap for about a year with my TJ, readjusting the factory linkage about a thousand times and never quite getting it to work right. It got to the point where once I finally got the T-Case to go in 4-LO I used to wedge a board behind the shifter to keep it in gear, unfortunately on rough terrain the board would fall out when I needed it the most!
Problem with the factory linkage is the tunnel mount pivot point gets so sloppy that it causes the Z-bar linkage to bind and not properly engage the shifter on the T-case. That, plus worn plastic bushings on the arms, rust, and lack of use cause it to bind even more and puts more pressure on the tunnel mount pivot point. I finally ripped out the Z-linkage and replaced it with a Novak shifter cable. Has worked perfect since.

Thanks guys! I will let you know how it goes.