I have a 1996 camry SE 2.2L automatic. After spinning a bearing in the engine, we ended up replacing the engine. After attaching the new engine (also from a 1996 camry) to the transmission, we put it in and it started up fine. The issue we did run into was that the transmission does not engage. When you try to shift from park to any other gear, it does nothing. The car rolls around like it is in neutral.

What could this be? there are no check engine lights, and the engine runs fine. Since we first noticed the problem, we took the engine out again and replaced the torque converter and made absolutely sure it was seated correctly. Upon putting it back in, the same issue occured.

Also, in the engine bay, the selector cable does in fact move, and the whole mechanism seems to be functioning correctly, although this may be the source of the issue somehow.

Thanks in advance for your help!

Bill

 

I just ran into the same problem on a 99. I have been unable to solve the problem, however, it is always possible I overlooked something. It may be the shift control solenoids located under the transmission pan and filter plate. I am not sure if this will help, since I tied replacing them and the problem persisted, but it is a possibility