Message: I have a 1992 Dodge Dakota 4WD with a 5.2L V8. It used to take a while for my 4WD Indiator light to turn off after I took it out of 4WD. The indicator light is on the floor behind the shifter.
Now the light never goes out. I have checked, and I know that I my 4WD is not engaged, but the light shows that it is.
Message: On my 1989 Dakota the 4WD indicator light indicates whether or not the front hubs are "in". It is possible your front hubs are "in" though the transfer case is "out" of 4WD.
One way to test the above is to see if the driveshaft between the transfer case and front axle spins freely when in 2WD if it does not spin freely then the hubs are "in".