Yes,    Syncros only,  to water proof it.  Also on the  starter.

Don't let him forget the plug in the bottom of the bellhousing.
Otherwise  the silicon seal is usesless.

Christopher Gronski wrote:

> My mechanic has found what looks like silicon sealant on the
> transmission case from my donor van. Is it normal to use sealant
> between the engine and the transaxel?
>
> Chris
>
> 86 Syncro GL AdventureWesty
> 87 Syncro Donor Parts Van
>
>