Deluxe Bearing & Seal Kit, 261XHD Transfer Case | 2001-2007

The Merchant Automotive Deluxe Bearing and Seal Kit includes the major bearings, seals and thrust washers needed to overhaul an NP261XHD manual-shift transfer case on 2001–2007 Duramax Silverado and Sierra 2500HD/3500HD trucks. The 261XHD is the heavy-duty, floor-shift transfer case used behind the Duramax and Allison. After years of towing and high-mileage use, worn bearings cause whining and growling, and tired seals cause leaks at the input, outputs and selector shaft. This kit puts the wear parts for a complete rebuild in one box, so you're not chasing individual part numbers with the case apart on the bench. It replaces our former 10053 kit for 261XHD cases.

Key Features

• Complete bearing and seal set for the NP261XHD manual-shift transfer case
• Front input, front output, rear output and input gear bearings
• Input, front output, rear output, selector shaft and speed sensor seals
• Planetary thrust washers, shift cam carrier bearings and adapter gasket
• Replaces Merchant Automotive kit 10053 for 261XHD cases

Benefits

• Fixes bearing noise and leaks in one rebuild
• No hunting down individual part numbers mid-job
• Restores a worn transfer case without buying a new one

Frequently Asked Questions

What happened to kit 10053?
Our former 10053 Deluxe Bearing and Seal Kit covered both the 261XHD and 263XHD transfer cases. It has been replaced by two case-specific kits: this kit (10463) for the manual-shift 261XHD, and our 10464 kit for the electronic-shift 263XHD.

How do I know if I have a 261XHD or 263XHD?
The 261XHD is the manual-shift case with a floor shift lever. The 263XHD is the electronic-shift case, controlled by a dash switch. Check the tag on the transfer case to be sure.

Does this kit include the chain or gears?
No. It includes bearings, seals, thrust washers and a gasket. If the chain or sprockets are worn, they're sold separately.

Should I fix pump rub while the case is apart?
Yes. The 2001–2007 cases are prone to pump rub, and a rebuild is the ideal time to install our Transfer Case Pump Upgrade Kit.

What fluid should I use when I refill?
We recommend Merchant Automotive Transfer Case Fluid, blended specifically for GM transfer cases.

Fitment

• 2001–2007 Chevrolet Silverado 2500HD / 3500HD 6.6L Duramax (LB7, LLY, LBZ) with NP261XHD transfer case
• 2001–2007 GMC Sierra 2500HD / 3500HD 6.6L Duramax (LB7, LLY, LBZ) with NP261XHD transfer case
• 2007 fitment is classic-body trucks only

While it's apart, add our Magnetic Drain Plug Kit and a new XHD Transfer Case Chain if yours is stretched.

What's Included

• (1) B11 Input gear bearing, 32 spline (DB73167)
• (1) Front input bearing, XHD (351240)
• (1) B18 Front output shaft bearing (303211A)
• (1) B22 Front output / input shaft bearing (325287)
• (1) B25 Rear output shaft bearing (B41-6)
• (2) Shift cam carrier bearings (B126)
• (2) B12 Planetary thrust washers (411215)
• (1) Front input seal (411070A)
• (1) A7 Front output seal (411081A)
• (1) A13 Rear output seal, XHD (22049)
• (1) Selector shaft seal (C-572)
• (1) A23 Speed sensor seal (10238)
• (1) Pickup tube O-ring (12478088)
• (1) Snap ring hole grommet (88958815)
• (1) Transfer case to transmission adapter gasket (331304A)