The engine in my 1996 7.3 PSD 4x4 is going dead when put into reverse or drive. It happens about 50% of the time. It feels like the transmission is actually lugging the engine down more-so than an engine idle issue. Maybe the torque converter is not slipping correctly? Has anyone else had this issue? Thanks for any help!
Check trans fluid level. Sounds like torque converter is locking on you. Could disconnect batteries or hook it up to a scanner and let it try a relearn
If your trans fluid is fine, you might also check to ensure that the transfer case spins freely. My buddy just had these same symptoms and it ended up being a busted part inside the transfer case. We kept thinking it was a transmission issue, so that's were we focused. It would have saved us a bunch of time and effort to check the t-case first.
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