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Hello everyone, I have a question that I am sure someone will be able to guide me on what might be the issue. I have an 07 Jeep Grand Cherokee that is a good runner (knock on wood) but recently noticed what looks like oil, but could be differential fluid maybe. I have done alot of repairs on this jeep but never worked on that section of it. The leak appears to have been very consistent for some time now which leads me to think it isn't motor oil but something else. I took a few pics of the location of the leak underneath the jeep and it appears to be where the driveshaft connects to the "rear differential " but hoping it might be something a little easier to work on. Any input or guidance would be DEEPLY appreciated!!!!
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2005 Grand Cherokee Limited 4.7L Quadra-Drive II
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From the pictures and location, the leak appears most likely your rear transaxle fluid. Two thing you could do here to confirm.
First, clean up the are really good removing all the buildup so you can more easily check for fresh fluid.

Second, park on level ground and remove the rear differential fill plug and slip your finger inside the fill hole. The fluid ideally should be right up to the bottom of the fill hole. if it is not, it is low. If low refill to specified level with new correct fluid, (at a min this will help protect your differential). If the fluid is significantly low when you refill, you most likely have your answer. But in any event, you should be able to see any new fluid leak from the seal at the driveshaft u-joint connection from where you cleaned.

I am assuming though the leak is not significant at this point, or I think you would have found it before now by seeing fluid under the vehicle. If it is confirmed to be leaking, there are products you can purchase that claim they will stop leaks, you could try this but at the age of the vehicle you might be better just renewing all the differential seals.

Also keep in mind that MOPAR recomends an additive for limited slip. The part number is (MS-10111 Limited Slip Additive Friction Modifier lubricant differential). I use this when I change my differential fluids. Some of the new synthetics claim to already have a modifier in them. I have heard from other members different level of success not putting this additive in and just using the modified fluid, but if you only need add a little bit of fluid you should be okay if you add product that claims it is in there. If you truly need to add a significant amount or even decide to remove the rear access cover and change your fluid (or the rear), then I would recommend getting some of this additive.

One other item. If you remove your rear cover and drain, make sure you buy the correct RTV to reseal the cover and follow the directions. Permatex and others make a special formula to seal for differential fluids.
 

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It is diff fluid, and is leaking at the seal. What happens is a small ridge gets built up on the metal where the old seal is, and that ridge has to be filed down smooth before putting the new seal in. Same thing happened to mine, and the dealer did not file down the ridge, so after the repair it still had a small leak. They had to redo the whole thing again under warranty.
 
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