* Low fluid levels: If the transfer case is low on fluid, it can also make a grinding noise.
* Damaged front axle: The front axle is responsible for driving the front wheels when you are in 4hi or 4lo. If it is damaged, it can make a grinding noise.
* Damaged rear axle: The rear axle is responsible for driving the rear wheels when you are in 4hi or 4lo. If it is damaged, it can make a grinding noise.