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i just bought a 97 f350 reg cab 7.3l diesel. when i put truck in reverse, it stalls out. start it back up and goes into reverse without stalling. 138k miles on motor.
Do the Obvious stuff first. Check fluid level (hot). Does it smell burnt or is it dark (not blood red). Change the fluid and filter if you see something out of spec. Since the truck is new to you I suggest doing this anyway even if you find the source of your trouble.
Check all electrical connectors on the tranny. Pull them and inspect terminals (both ends).
Do you have any lights flashing or lit?
Most tranny shops will scan it for free. It could be something that doesn't trigger a light to come on.
Mine will lug in reverse if I leave the EBPV exhaust brake activated. Flip it off & I instantly gain almost 100prm. Hasn't died, though. I vote for torque converter.