Keep the D35 if you're under 32s and not doing hard wheeling. Swap to 8.8 or 8.25 if you're at 33s+, running a locker, or doing real trail use.
The decision tree for keeping vs swapping your Dana 35:
KEEP THE D35 IF:
You're running 30" or 31" tires.
You drive mostly on pavement.
You don't have a rear locker (or won't).
You don't do aggressive trail work.
You have a daily driver that occasionally sees fire roads.
Cost is a strict constraint and you can't swing an axle swap.
SWAP IF:
You're going to 33" tires or larger.
You're installing a rear locker.
You do regular moderate-to-hard trail work.
You've already broken a shaft.
You want disc brakes (the D35 is drum only; the 8.8 has discs).
You want to run 4.56 or 4.88 gears (the D35 carrier and ring are small; bigger ratios put more stress on small gears).
The cheapest swap is the Ford 8.8 Explorer (~$200-400 from salvage + $400-800 in install parts). The 8.25 swap is similar in cost from a salvage XJ. Both are massive upgrades over the D35 for the price.
Builders who try to make the D35 work with chromoly shafts, c-clip eliminators, and a locker typically spend $1500-2000 total and still have a D35. For the same money, an 8.8 Explorer with disc brakes, ARB locker, and 4.10 gears can be assembled.
NAXJA's frequent advice: "the strongest D35 is the one that's not in your truck."
Written and maintained by an AZ wheeler and driveway wrencher. Always cross-reference your factory service manual — modifications affect vehicle safety and warranty. Work at your own risk.