Brake light is on but ebrake is down.

Brake pads,s are bad,and this is this reason you have very little pedal,you need to have this repaired quickly,especialy if you here grinding from them.

Also, depending on the year, make and model of the vehicle sometimes a brake light indicator being on when the ebrake is down means the brake fluid is low or you have another problem possibly with the ABS system, if so equipped. But, T_S_T above also gave excellent information.

If the pads are worn down, the pistons are pushed out further to make contact with the rotors so there is less fluid in the system. That is why the peddle is going down. Get the brakes done now.

None of the above answers seem to help. I have plenty of fluid in the reservoir. Brake peddle if good. I adjusted e-brake lever to 5-6 clicks, as suggested by maintenance manual. But the brake light on the dash panel stays on during operation of vehicle. Is this related to the e-brake, or the main breaking system?