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2nd Gen Ram Tech1994-2001 Rams: This section is for TECHNICAL discussions only, that involve the 1994 through 2001 Rams. For any non-tech discussions, please direct your attention to the "General discussion/NON-tech" sub sections.
4wd light is turned on/off by a switch on the end of the CAD, which is on the back side of the front axle, passenger side. it has a vacuum looking thing on one end with vac lines and an electrical switch on the other. unplug the electrical connector and see if the light goes off. if it does NOT go off, then troubleshoot those wires. if the light does go off, then troubleshoot the switch. start by spraying the connector and switch with wd40, and checking for damage, cleaning out mud, rust, etc. test switch with ohm meter while engaging/disengaging 4wd. the switch is supposed to be turn on/off by the internals of the cad. search on cad for recent posts that include nice diagrams.