I recently purchased an 04 G35x. Unfortunately I've bought it at the end of winter and I wont be able to test out AWD .

When I push the snow button on the middle console, I thought the car was supposed to go into AWD mode but the light on the dash doesnt turn on.

Is my AWD broken or does the light in the dash only turn on when it feels the car slipping?

 

the awd light will come on if something is wrong with it. Like if you were to pull the fuse. That is from what I understand. Mine had never turned on when I push the snow button or when I am slipping. The slip light should come on then.

 

There should be a light on the snow button that turns on when you are in snow mode. The AWD light on the dash is only for problems, like lumpia said. The AWD is always "active" unless you pull out the fuse. From a dead stop, the AWD is split 75/25 rear/front until you get up to around 12 mph then it goes to 100 rear unless it senses slip. You have a separate slip light right in between the speedo and tach that shows when you are slipping.