M-Class (W163) Produced 1998-2005: ML 230, ML 320, ML 350, ML 400 CDI, ML 430, ML 500, ML 270 CDI

W163 Transfer case question???

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Old Feb 3, 2026 | 02:38 PM
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W163 Transfer case question???

Hello all, Have a 2001 ML320 that I bought four years ago that I am second owner.. When I purchased i could have sworn the guy told be he just change transfer case oil. Fast forward to now as I started getting a clicking noise low speeds while under acceleration especially in a turn. In doing some digging folks have said transfer case has a chain and could be loose causing issue. Have vehicle at local indy shop and he ruled out half shafts and carrier bearing. He stated sounds like it's coming from transfer case. Question can transfer case be rebuilt? Or should I find a used or rebuilt one worh low miles? Also could a gear oil change fix problem? Thanks for feedback
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Old Feb 17, 2026 | 12:25 PM
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GLC220d X253 2017
Originally Posted by tpdtopcop
Hello all, Have a 2001 ML320 that I bought four years ago that I am second owner.. When I purchased i could have sworn the guy told be he just change transfer case oil. Fast forward to now as I started getting a clicking noise low speeds while under acceleration especially in a turn. In doing some digging folks have said transfer case has a chain and could be loose causing issue. Have vehicle at local indy shop and he ruled out half shafts and carrier bearing. He stated sounds like it's coming from transfer case. Question can transfer case be rebuilt? Or should I find a used or rebuilt one worh low miles? Also could a gear oil change fix problem? Thanks for feedback
Hi, Till a couple of years ago I had ML270 2002 and I can confirm that within the transfer case there is a chain. How do I know that you ask. Well one sunny day going up the hill my transfer case fell to bits and the chain was sun baking on the road. I didn't re-build but bought a second hand one in a good nick. To my knowledge there are kits for re-building the transmision which include new chain. You didn't mention if you had checked level of oil in the traney. I would do that first.
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Old Feb 18, 2026 | 10:57 AM
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2001 ML 320
Originally Posted by tpdtopcop
Hello all, Have a 2001 ML320 that I bought four years ago that I am second owner.. When I purchased i could have sworn the guy told be he just change transfer case oil. Fast forward to now as I started getting a clicking noise low speeds while under acceleration especially in a turn. In doing some digging folks have said transfer case has a chain and could be loose causing issue. Have vehicle at local indy shop and he ruled out half shafts and carrier bearing. He stated sounds like it's coming from transfer case. Question can transfer case be rebuilt? Or should I find a used or rebuilt one worh low miles? Also could a gear oil change fix problem? Thanks for feedback
I just recently change my transfer case oil and before doing so I did some research. From what I’ve gather from some users who were experiencing similar noises as you changing the oil several times (change every 3k miles) help alleviate the noise. You may want to try this step before changing the whole unit.
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Old Feb 24, 2026 | 02:19 PM
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Change it right

The transmission oil change was not handled well by the factory on these early W163s, the oil change procedure was developed a few years later when the forever fill began to fail. Find that procedure and then find a tech who is willing to follow it. A BMW independent did mine, the other way is multiple drain pan drops and refills to get most of the old oil out. As you probably know there was no dip stick but I got mine on eBay for a few bucks, check it hot with engine running.
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Old Mar 7, 2026 | 10:33 AM
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They're not difficult to change out if you have a full day and some tools.











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