That little hole next to the N is a recessed button that you stick a pen in to activate Neutral. Stick a pen in there and see if it will turn off the light. If you get the light off, you'll probably get it back into gear. Make sure fluid levels are good in trans and transfer case. And have someone check that trans.

 

Passenger air bag on/off switch.

 

^--- that!

 

Ah Ha....Mine being a Quad cab, I do not have that. Instead, kids and short people get to sit in back..............

 

Wanted to report back on the resolution of this problem. 2005 Dakota 4WD automatic transmission.
First "neutral" light came on but was still driving, later in day went to start and no gear would engage.
Turned out to be the transfer case "servo motor". A rebuilt one was installed for about $300 parts and labor.
Thanks all