New output shaft seal but still leaks oil

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Oct 14, 2013
Milan, IL
A few months ago I replaced the rear output shaft seal on my t-case with a brand new one from Toyota. A couple days ago the truck was up in the air for exhaust work and I saw that it is still leaking gear oil out.
Any ideas what would cause this?

excessive bearing play
clogged breather
When I put it back together i did not feel any slop and all surfaces were smooth. Where is the breather at?

On top of the transfer-case. Accessible from the passenger side IIRC
Agreed that checking the breather is critical. Check the diagrams on for a better idea of where the breather is. Pry off the cap/spring/seal, slip on some 3/8" fuel line, and clamp it on with a hose clamp. It will be tight in there, and you will need strong flashlights and perhaps a mirror. Run the hose forward and up to the top of the firewall, securing it along the way, and adding a small fuel filter at the top, to keep the dust out.

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