Yes, it sounds like the transfer case is in Neutral or (N). Make sure the small shift lever is in 2-H, 4-H or 4-L and not in N.
Also make sure the truck has propeller shafts (drive shafts) installed.
If you happen to have manually-locking rear hubs, for a disk brake or full-floating axle conversion, make sure the rear hubs are in the "lock" positions.
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