YES it will. I just did it a month ago on my 89. Just make sure you have the 208 shift linkage because the 241 linkage will NOT quite cut it. Other than that, it is an open and shut case. My brother and I had it done in an afternoon using no special tools and floor jacks, (not the best way). Just undo the four bolts that connect the t-case to the tranny, slide one out and slide the other in and bolt it in. Good luck...keep me posted on how it goes!!
10 BOLTS O' FUN