Breather valve on top of transfer case pours transmission fluid

I just bought a 94 with a 3.0 and an automatic transmisson.
The breather valve on the top of the transfer case, above the rear drive shaft, pours tranny fluid when running.
I suspect that the breather that connects to the tranny may be clogged.
I have yet to find anyone who has discussed this problem.
Any ideas?
Thanks in advance.

 

Drain your transfer case, you might have water in it...thus causing the transmission oil to boil or bubble out when running due to this displacement. Should probably do a fluid service on both the transmission and the transfer case as they do not share the same fluids.

 

I had the same issue when I changed the fluid in my manual transmission. As per shade tree mechanic hand book I filled until it was level with the trans fill hole. May have had a bit too much oil in there. Anyway, that’s a lot of words to say after about 1000 miles it vented off what oil it thought was too much and now everything is dry as a bone on the outside.