I own a 2000 Jeep Grand Cherokee Laredo, 4WD automatic 4.0. I have been having issues with the transmission. It seems the gears are slipping at times. Last week after about 200 miles on a trip, I was going about 70 mph and suddenly it was like I had shifted into Neutral and the rpm needle went to about 4. When it happened it almost felt the way it feels when you have a flat tire. I turned the car got off waited a minute then restarted and was able to drive off the exit ramp without a problem. Later in the weekend it seemed to get stuck in 2nd gear. I was able to manual shift. Someoone suggested a common problem with jeeps--mentioned things like gevernor solenoid and pressure sensor. Suggested having the transmission fluid changed. Is that a good place to start?

SOURCE: Transmission problem

I had a shifting problem. The car would start in the wrong gear and shift at wrong times. I repaced the governor postion sensor and tranny fluid and the problem has been fixed for several years. Did you replace the tranny fluid?

SOURCE: I HAVE 1994 JEEP GRAND CHEROKEE LAREDO 4.0 ALL

Well, there aren't really THAT many clutches in an automatic trans. The older ones had 2 or 3 and 2 band brakes that controlled 2 or 3 forward speeds and reverse. Newer ones have one or two more for overdrive and more speeds. Your jeep is more like the older style, with a lockup torque converter added. The original problem sounded like a piece of contamination in the tailshaft governor, and the best thing was (once it started working again) to leave it alone. The old Chrysler owners manuals told you not to touch the transmission, EVER, unless it was being used for a taxi or towing. The risk of additional contamination far outweighed the benefits of changing the fluid. Your problem now sounds like the valve body is contaminated and something is stuck. There are lots of little spools and valves that are machined to very tight tolerances. Little fibers from clutch wear and filter changes can cause this. It's got pressure, and it's still got clutches (it wants to be in 1st gear). A new valve body is a good bet to fix the problem, but the best thing is to take it to a transmission guy you think you can trust to test the pressures in the valve body and determine what is actually stuck and tell you if it can be repaired or needs replacing.

SOURCE: transmission all of a sudden would not **** into 3rd gear.

I have had the opportunity to visit nearly every transmission and repair shop within a thousand square mile area in one area of the country...What I discovered is that about60% of the transmission shops were good...of those about 10% were outstanding. The 40% remaining were very poor, with about half being outright thieves! This problem had nothing to do with franchise name, but with ownership and willing crew. I found this to be true of general repair and dealerships as well!
Your transmission problem may be an electrical malfunction but then again, it might not be. If you are not totally comfortable with the shops diagnosis, bring the vehicle somewhere else.
One thing that you don't want to do is have the unit rebuilt, then figure out what's really wrong with it!
Good luck

SOURCE: 2000 Jeep Cherokee Gear Grinding & 4WD Whine sound

Give a try by change your transmission/filters and Transfer case oil.

SOURCE: My 1994 Jeep Grand Cherokee Laredo doesnt shift

From your explainations your vehicle is due for a transmission filter kit and fluid change. Be sure to spray out the transmission very well after you drop the trans pan w/example you can use a couple cans of brake cleaner spray