Transfer case position switch most likely out of position. Its just an indicator light, not an electronic control. Mine was on for the last 6000 miles then I went offroad and it corrected itself. There is a how-to somewhere on how to fix it, but its a lot of work for an indicator light.
Make sure your really not in 4wd.
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2005 CRD "
Ol' Blue"
Red Ryder carbine-action, two hundred shot range model air rifle with a compass in the stock and this thing which tells time.
My build page- RL Komodo Rear and TJM Front Bumper, armored, lifted, JBA Steel D30, 4.10s and ARB air lockers.