A 3 to 3.5" lift kit with 31" tires and a rear automatic locker will handle almost any easy to moderate 4x4 trail, and drive nicely on pavement. My lifted blue 2000 was my daily driver for about 8 years. I have driven it 1250 miles from Minneapolis to Moab Utah, spent a week on the 4x4 trails, and then driven it 1250 miles back again a number of times, no problem.

You will also need skid plates, recovery points, and self-recovery gear.

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I daily drive my XJ about 100 miles a day. ZJ coils and 2" spacers, 2" shackles, and ZJ Upcountry shocks on 31s. No death wobble, very stable at 70 mph.

 

First thing is to do any maintenance needed. A worn ball joint will deteriorate rapidly off road, a worn cooling system will overheat, a lack of grease in joints will show, a missing battery clamp will allow the battery to smash into the hood etc.

I would keep the 31" tyres, they are nimble enough on that size and the grip is adequate on All Terrains. However you may get some rubbing, true 30" is a better size for stock (many 31" tyres actually measure 30"). Check the tyre pressures are right, airing down a bit on trails is fine but you will need a pump to inflate before getting on the highway.

Some basic recovery gear, a snatch strap and shackles is worth the investment.

Next step is to lift it a little, 2" to 3.5". Try not to spend too much money on this (look up budget lifts) and keep stock spring rates if possible so the ride is comfortable. i would change the shocks and put in sway bar disconnects to get maximum wheel articulation.

After that there is little I would change for easy to moderate trails, maybe light steel bumpers in place of the originals (I bought them cheap, they weigh little but being matt black I can rub them on stuff and touch up). Rear light guards, extra lamps on the front. Recovery points front and back.

Next up is more serious mechanical spending, lockers will enhance the off road performance. But if you are getting that serious I would start to look at beefing up the suspension and steering with heavy duty control arms and tie bars etc. A winch would be the next piece of recovery gear but a never used winch is a boat anchor.

 

Agree with almost all of the above.

A 2-3.5" lift would be my suggestions and keep the 31's.

One option on the winch is to use a front and rear receiver and mount the winch to a receiver plate. Go with synthetic cable to save weight for loading unloading. I know some people will argue against this approach, but i've recovered more than once using it without issues. I know it isn't ideal but it is a nice compromise IMHO for keeping it a daily driver. The front receiver this also acts as your front recovery point.

Oh and 80mph in a lifted XJ is quite an experience. These days I rarely go above 70-72mph both for MPG and staying sane.

 

Thank you all for your awesome advice! I'm noticing 3.5 inch is around the average between all of you. Does anyone recommend a company to order lift kits from? I'm looking at rough country and i see this kit that involves alot of pieces but it says 4.5 lift. Is that too high to drive on the roads? Definitely going to want a winch and recovery options. But focusing on suspension/lift options first.

This is the link to what I want
https://www.roughcountry.com/jeep-xj-long-arm-suspension-lift-kit-laxj4.html

 

What is the budget ? You have done your lift kit research about add-a-leaf vs. lift kit leaf spring ? Don't forget, no lift kit is complete, and some lift kits are more complete than others. At about 3-4 inches of lift is when the XJ Cherokee needs a Slip Yoke Eliminator (SYE) and custom driveshaft. At 3 inches you might, or might not, need an SYE, at 4.5 inches, you cannot skip installing one.

That Rough Country kit is slightly exceeds your stated needs and goals, and does not come with rear leaf springs.

The Rubicon Express RE6025 3.5" Super-Ride with rear leaf spring or something similar from Iron Rock Off Road might be a better choice.

You will also need longer brake lines, swaybar disconnects, skid plates, recovery points, and self-recovery gear.

 

Well if I can buy items on credit then my budget can be higher. Maybe 2k+ if not on credit id like to keep it around 1k.

But wow that recommendation on the Rubicon lift was perfect once I read the description, so thank you for that! If I get the 3.5 lift would you recommend a SYE still?

Like the other guy said though I do want to swing it by a shop and get all the fluids checked and do an inspection but I have that Rubicon 3.5 lift bookmarked and am most interested in that and especially because it comes with the leaf springs.

Do you have a recommendation for where to get a good locker from? I know that's an important piece for offroading.

Also how can I indentify which rear axel is on my Jeep? DANA ??

 

. . . I do want to swing it by a shop and get all the fluids checked and do an inspection . . .

Sorry, but this does worry me a little, in the context of your ambitions for the XJ.

 

Sorry for the spam posts but another question, what's the difference between a long arm lift kit and a regular lift kit?

 

Your axle at the front is located by a pair of control arms that come from the chassis near the bulkhead, they are about 2' long. When you lift the body/ lower the axle a lot you start to pull the axle backwards due to the angles. Over 3" and I would start to worry about the geometry being changed. Also the control arms are pressed steel, non adjustable and not particularly strong.

One solution is to swap out the "short arms" with adjustable heavy duty versions. You can then dial the suspension in. Up to 4.5" this is viable but when you are flexing the wheel it is moving backwards and forwards at the same time as up and down. This is just not going to work for more lift.

Long arms sort this particular issue in a much better way by being a lot longer (about 4-5')and being mounted further back on the bottom of the body. These longer control arms are also adjustable which allows you to get the axle sitting just right, even if you take them up to 6" or even 8" of lift. They also cost more. A good kit is $2700 and more.

It is not so easy to lift an XJ much over 3", there is more to it than just lift shackles, lift blocks, shoc extensions and coil spacers. If you look up "budget lift" from Rocky Road (just an example, never tried their kit myself) you will see what little is needed to get a lift of 3". $200

If you are on a budget you may want to look at a smaller lift on the internet, plenty of people have done a 2.5" to 3" lift for little and there are a number of home brew parts lists.

 

It looks like the stock axle on the 97 xj is DANA 35, 27 spline. Seems I can swap a Chrysler 8.25 on it. Do I need to upgrade the stock rear axle or is it ok to just put a locker on it?

 

Any of the available LockRight type spider gear replacement lockers will be fine. I have a PowerTrax No-Slip and a LockRight that both work well. Your rear axle could be either a Dana 35 or a Chrysler 8.25, you have to look. The D-35 is known to break axle shafts with larger tires and a locker, when abused. I would not invest any money in a D35. While installing the lift would be a perfect time to swap to a Chry 8.25 if necessary.

I would install an SYE before a winch.