Q&A

 Master

You could have an internal transmission clutch or band problem with reverse. Hard to say without a good diagnosis and inspection. The EGR valve, if a factor, should not discriminate betwen forwards and backwards.

 Enthusiast

yo,
Is the TCIL (OD on/off LED & Switch @ end of stalk) blinking?
Do you have the Check Engine Light (CEL) lit all the time?
Get it scanned for Free at local parts store; make sure Engine is @ normal op temp when it is tested during the Key On, Engine running (KOER) portion of the test. Post any Code(s) found here. A guess is;
DTC P1728 - Transmission Control Indicator Light (TCIL) Illuminated &/or Engine Stall when Reverse and/or Manual Low is Selected May Occur TSB 96-10-14 for 95-96 Source: by Ford
This could be caused by the torque converter hub contacting the cover which may generate metallic and/or friction material particles causing control valves to stick and/or damage the fluid pump. Damage to the fluid pump may cause the converter clutch to engage on intermittently.
Replace front pump assembly and/or torque converter if damage or wear is present. Refer to the following Service Procedure for the proper action to use to correct the concern identified

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