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Discussion Starter #1
So my wifes envoy is stuck in AWD. Cant get it to go into 2WD or 4WD. Any ideas on what can fix this?
 

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2004 gmc envoy_slt
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Is the Service 4WD dash light on?
Before anything else, try running the selector switch thru all of the positions, with the ignition off. This may clean the contacts.
If that does not help, the problem may be the Encoder motor on the transfer case or the TCCM is stuck (the 2002 model year TCCM sometimes hangs up, try pulling fuse #8 in the underhood fusebox for a short time)
 

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Discussion Starter #3
Yes. the 4WD service light is on. I will try what you mentioned and see what it does. Thanks!!
 

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2004 GMC Envoy SLT 4.2
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Yes. the 4WD service light is on. I will try what you mentioned and see what it does. Thanks!!
Not sure if the following quote will do any good for you , but , it can't hurt to try :
Free fix

FREE FIX. Hi. I have the same issue with my 2004 Trailblazer. In the cold, sometimes the 4wd selector switch lights flash at start up, and after 10-15 seconds, they go off. After thinking about it, I wondered if the Encoder motor was having a syncing/positioning problem. The next time I started it up, when the selector lights began to flash, I quickly pushed the brake pedal and shifted the gear lever to Neutral. BINGO, it worked!!! The selector light locked solid and functioned normally. I live in a snowy climate, so yes, the transfer case is shifting into AWD and 4HI after doing this.
 

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I have had a similar issue with switching between 2H/4L/AWD etc. and what I have learned is that you should always switch modes in neutral while the engine is running. It always works for me like that.
 

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2004 gmc envoy_slt
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The only mode that requires the tranny to be in Neutral is 4LO, all others can be switched on the fly.
 

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2008 gmc envoy_sle
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dealer told me, always switch in neutral.

they said that switching while vehicle is in motion could damage it, especially as it ages.
like an old man getting up from a chair. groans.
 

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2006 Chevrolet Trailblazer LS 4.2L l4
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I was having similar issues, filled up my t case and ran it through all the gears with trans in neutral, and the t case got stuck in neutral. Pulled an encoder motor from the scrap yard and replaced mine with the scrap yard motor and it shifts to every gear fine and the light above the different gears shifts immediately instead of blinking for 5-10 seconds like it used to. (My service 4wd light would also come on periodically and it hasn’t came back on in the month i’ve had the new motor)
 
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