S60 Transfer Case Defect

I have a similar Volvo S60, and I had some gear grinding issues. Have you checked the transfer fluid level? Maybe an oil change could fix it?

Fluid level's fine. It seems more serious than just low oil. What was your experience with the gear grinding? How did you narrow it down to the transfer case?

The grinding got worse over time, especially during acceleration. I initially thought it was the transmission, but the workshop diagnosed it as the transfer case. I'd suggest letting professionals have a look.

Thanks. Workshop confirmed it: defective gears in the transfer case. Repair cost is about 330€. Appreciate the insight.