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07 Highlander V6 4WAD, pretty sure the gear oil leaks at the transfer case shell. I have ordered many tools and parts and will pull the trigger soon (when it gets warmer.)



To remove the transfer case, I will try breaking a piece or breaking the evil bolt on the upper left of the bracket to engine housing, then replace with studs and nuts. Then, I'll replace the transfer case with a rebuilt one.



If you have done the job, please let me know any details from your experience that may help me or others. Thanks a lot!:smile:
 

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I thought my transfer case was leaking, but it turned out to be motor oil from the rear valve cover slowly dripping\seeping down and around to the bottom of the transfer case. I would check the level, or the smell of the oil you see to verify that is the problem before you go through the trouble.
 

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I thought my transfer case was leaking, but it turned out to be motor oil from the rear valve cover slowly dripping\seeping down and around to the bottom of the transfer case. I would check the level, or the smell of the oil you see to verify that is the problem before you go through the trouble.

Thank you!
I have cleaned the surface several times and can see where the oil come from. I can also smell the gear oil.

The leak is very tiny, a couple of drop after driving but still thinking to replace the transfer case with a rebuilt one for peace of mind.
 

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one more thought, since this seems like a bear of a job... first double check those bolts for tightness and see if that helps. otherwise why not check the level and incorporate a transfer case fill into your regular maintenance? I would imagine you would only need an ounce or two a year and it would become obvious if the leak got any worse.
 
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