First thing - make sure the transfer case is in gear and not in neutral.
Second - if it is an older 380 the splines on the gearbox output shaft and the corresponding cog that is the input to the tfr case also wear due to poor design - lack of lubrication. The solution is to replace both with new stuff - in particular a cross drilled "cog" (not sure of the correct term) that allows oil to lubricate the splines.
If it is not this then major internal work might be needed - others can advise on this.
Garry
REMLR 243
2007 Range Rover Sport TDV6
1977 FC 101
1976 Jaguar XJ12C
1973 Haflinger AP700
1971 Jaguar V12 E-Type Series 3 Roadster
1957 Series 1 88"
1957 Series 1 88" Station Wagon
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