I'm confused. My 2008 H2 has the rotary transfer switch but no Neutral marked on the dial. It will go to the supposedly Neutral position but flexes back to 4L when released. Did they make an all wheel drive H2 in 2008??? Can I replace the transmission to get the ability to disconnect the drive train? I need to flat tow!!!

 

Did you RTFM?

Look here - https://my.gm.com/home

Select your year, Hummer, H2 and get the owners manual. Read the section on operating the transfer case and the section on towing.

Your H2 is full time 4WD and you shift the transfer case to neutral in a certain way by holding the **** for at least 10 seconds (trans must also be in neutral).