5th Gen - Front Diff and Transfer Case work only in 4Hi/4Lo ?

FWIW - I'd try just cycling 4lo on and off a few times while tapping on the back of the actuator area on the transfer case (lightly - don't hit hard enough to break it). It may be all you need to get it freed up. Probably have a buddy help so you can cycle it while you're underneath. Ideally just tap with a small wooden block or the handle of a screwdriver. Might not work. But you never know. Can't hurt to try.

Be careful so you don't roll over yourself!! Make sure it's in neutral and your friend has the brake applied and all of the other safety things. It doesn't hurt to take extra caution even though it shouldn't move if it engages.

I have a lever actuated case, so I haven't had this issue. But it's worth a shot before you spend a lot of $$ tearing it apart. Once it moves, it'll probably be fine again forever.

This is the part that isn't moving properly pointed to with the red arrow. It's on the back to the driver's side of the flange that attaches to the rear drive shaft.

FWIW - swapping the actuator should take about an hour for a professional mechanic. Not sure what the price costs. If it's just pulling off, freeing up, and back on, also about 1hr of labor. Here's a video of how to do it. How to change Toyota Tacoma Transfer Case Actuator - YouTube

If you can find a shop that specializes in toyota 4x4s, my guess is that they could free it up for $150 or so. Basically just 1hr of shop labor and in most cases if they know what they're doing they could get it back in business with no new parts needed. Just needs more use to keep it freed up.
 

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