01 Jeep Cherokee XJ Transfer case noise.
SOLVED!!!!
It turns out that I needed to do a transfer case drop after my 3.5" lift.
I ended up going with an 1 1/8" drop and it not only took away the vibration, but it completely made the noise disappear.
From my findings even with as little as a 2" lift you should do at least an inch TC drop, or a SYE
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