Yes it can be built to handle it, but I wouldn't reccomend it in OD. The 3-4 clutch pack is pretty weak in these even with a Z-PACK or equivelant. Go through it and do the bushings in it and put a wide 2-4 band and new drum in it with a BEAST sunshell, A Z-PACK in the 3-4, corvette servo for the 2nd, TRANSGO shift kit, and match it up with a good converter and you'll be fine. I built up a 4L60 E in a 93 2500LD that is putting down about 250-275HP with swirl port heads, but is making some killer torque for a small block. The stock built tranny didn't live long, but the built one has towed well over 10K in 3rd and is still going strong.