One problem related to transfer case has been reported for the 2005 Nissan Xterra. The most recently reported issues are listed below. Please also check out the statistics and reliability analysis of the 2005 Nissan Xterra based on all problems reported for the 2005 Xterra.
Differentials front and rear are under engineered and break extremely easily. Transfer case also wouldn't shift into 4 wheel drive.