Possible causes could include:
* Problems with the transfer case: Low fluid, a malfunctioning actuator motor, internal damage, or a faulty sensor.
* Issues with the front differential: Low fluid, a faulty sensor, or internal problems.
* Problems with the front axle components: Issues with CV joints, axles, or wheel speed sensors.
* Electrical problems: Faulty wiring, connectors, or the 4WD control module itself.
* Actuator motor issues: This is the component that engages and disengages the 4WD system.
* Low fluid levels: Check the transfer case and differential fluid levels.
You should NOT attempt to drive in 4WD if this light is on. Continuing to use the 4WD system could worsen the problem and potentially cause more extensive (and expensive) damage.
To diagnose the problem properly, you should have the vehicle scanned with a professional OBD-II scanner capable of reading the specific trouble codes related to the 4WD system. This will give a mechanic a much more precise indication of the source of the problem. Ignoring the message can lead to unexpected 4WD failure at the worst possible times.