What is the 2020-2022 Hyundai Palisade Tow Hitch Wiring Harness Module Short Circuit Fire Risk — Recall 22V-633?

On Palisades equipped with the factory or dealer-accessory tow hitch harness, debris and moisture accumulate on the tow hitch module's printed circuit board. The contaminated PCB can short internally and ignite, with fires reported while the vehicle was parked and unattended as w… Repairs typically run $0-$0. Severity: high.

What is the 2020-2024 Hyundai Palisade Oil Dilution / Gasoline Contamination in Engine Oil?

The 3.8L Lambda II V6 in the Palisade can suffer from fuel diluting the engine oil, particularly in cold climates with short trips. The GDI system can allow unburned fuel past the piston rings during cold starts. Oil level rises above the full mark and smells of gasoline. Hyundai… Repairs typically run $0-$200. Severity: medium.

What is the 2020-2023 Hyundai Palisade Headlight Assembly Moisture Intrusion / Condensation?

Palisade headlight assemblies are prone to moisture intrusion and internal condensation, significantly reducing nighttime visibility. The issue stems from inadequate sealing of the LED headlight housing. Some owners have had multiple headlight replacements under warranty, only fo… Repairs typically run $0-$1,500. Severity: medium.

What is the 2020-2025 Hyundai Palisade 8-Speed Automatic Harsh Shifting / Delayed Downshift?

The 8-speed automatic transmission in the Palisade can exhibit harsh 1-2 and 2-3 upshifts, delayed downshifts when passing, and occasional harsh engagement from park to drive. The TCM calibration is the primary issue, though some cases involve valve body wear. Hyundai has release… Repairs typically run $0-$1,500. Severity: medium.

What is the 2020-2022 Hyundai Palisade Forward Collision-Avoidance Assist Disabled by Blocked Lower-Bumper Radar / False Activations?

The FCA radar sensor sits low in the front bumper fascia where it collects slush, road salt spray, snow pack and mud. Owners report the system shutting itself down with a "Forward Collision-Avoidance Assist disabled. Radar blocked" message after as little as an hour of winter dri… Repairs typically run $0-$400. Severity: medium.

What is the 2020-2025 Hyundai Palisade Panoramic Sunroof Drain Tube Kink / Headliner Water Intrusion and Track Rattle?

Two related panoramic sunroof defects are widely reported. First, the sunroof drain tube is routed and secured poorly at the factory and gets kinked or pinched behind the headliner; the sunroof tray then overflows and dumps water into the headliner, A-pillar and onto the front se… Repairs typically run $150-$1,800. Severity: medium.

What is the 2020-2023 Hyundai Palisade Power Liftgate Drive Unit / Gas Strut Housing Cracks and Fails?

The powered liftgate spindle drive units (the powered struts on each side of the tailgate) fail commonly, typically starting around 30,000-50,000 miles. The plastic outer housing is thin, and the internal spring shears and bunches until it splits or bursts the housing — owners de… Repairs typically run $400-$2,500. Severity: medium.

What is the 2020-2023 Hyundai Palisade Repeat 12V Battery Drain from Module Parasitic Draw (Body Control Module)?

A recurring Palisade complaint is a 12V battery that goes flat after the vehicle sits a few days, repeating even after the battery is replaced — one owner reports being on a fourth battery. The root cause in the documented cases is a module that fails to go to sleep and holds an… Repairs typically run $200-$1,200. Severity: medium.

What is the 2020-2025 Hyundai Palisade Infotainment Screen Blackout & BlueLink Telematics Failures?

Palisade owners report the central infotainment/navigation screen going black and unresponsive, taking out GPS, Bluetooth audio, and the backup camera at once, sometimes requiring a costly head-unit replacement. Separately, BlueLink remote start and app functions stop working, of… Severity: medium.

What is the 2020-2023 Hyundai Palisade Windshield Cracks From Minor Stone Chips (Thin OE Laminated Glass)?

One of the single largest owner-complaint threads in the Palisade community concerns windshields that turn a pinhead stone chip into a full-length crack, often overnight after a heat/cold cycle. Owners report cracks appearing within hours of delivery and cracks over 10 inches lon… Repairs typically run $450-$1,400. Severity: medium.

What is the 2020-2025 Hyundai Palisade Self-Leveling Rear Shock Absorber Failure — Knocking / Thumping Over Bumps?

Higher trims use self-leveling rear shock absorbers. Owners across palisadeforums.org and palisadeforum.com report a knock, thump or hollow pop from the rear over expansion joints and rough pavement, often accompanied by a harsh, uncontrolled rear ride and visible oil weeping fro… Repairs typically run $600-$1,600. Severity: medium.

What is the 2020-2022 Hyundai Palisade HTRAC AWD Highway Vibration — Propeller Shaft and AWD Coupling Assembly?

AWD (HTRAC) Palisades develop a steady vibration felt through the floor and seats at roughly 65-75 mph that is not corrected by tire balancing, road-force balancing or wheel replacement. Hyundai published a TSB covering AWD vehicles built between April 10, 2019 and July 27, 2019… Repairs typically run $0-$2,200. Severity: medium.

What is the 2020-2023 Hyundai Palisade Premature and Uneven Rear Brake Pad Wear from Seized Caliper Guides / Corroded Abutment Clips?

Palisade owners routinely find the rear pads worn out at 30,000-40,000 miles while the fronts still have most of their life — the opposite of normal wear distribution on a front-heavy SUV. Forum teardowns identify the mechanism: the rear caliper pad-retraction springs are very we… Repairs typically run $300-$800. Severity: medium.

What is the 2020-2021 Hyundai Palisade Foul Cabin Odor from Headrests / Interior Materials?

Hyundai TSB 21-BD-002H-1 applies to certain model-year 2020-2021 Palisade (LX2) vehicles equipped with Nappa leather and produced before November 23, 2020. The bulletin documents odor that may emit from one or more headrests. Severity: low.

Hyundai · Known Issues

2021 Hyundai Palisade Problems: 17 Known Issues

2021 model year · 1,450+ owner reports · Updated August 2026

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According to Au7o's analysis of 1,450+ owner reports, the 2021 Hyundai Palisade has 17 documented known issues, with 4 rated critical. The most serious are Seat Belt Buckle Fails to Latch (Out-of-Spec Buckle Assembly) — Recall 25V607, Third-Row Side Curtain Airbag Improper Deployment (FMVSS 226 Failure) — Recall 26V034, 3.8L Lambda II Excessive Oil Consumption Leading to Rod Bearing Wear and P1326 (KSDS) Limp Mode ($300-$9,000 repair) and Tow Hitch Wiring Harness Module Short Circuit Fire Risk — Recall 22V-633 ($0-$0 repair). The most commonly reported issue is Oil Dilution / Gasoline Contamination in Engine Oil with 620 owner reports. Across all issues with published estimates, repair costs range from $150 to $9,000. DIY maintenance guides at au7o.io.

Frequently Asked Questions

What are the most common Hyundai Palisade problems?

According to Au7o's analysis of 1,450+ owner reports, the 2021 Hyundai Palisade has 17 documented issues. The most frequently reported are: Seat Belt Buckle Fails to Latch (Out-of-Spec Buckle Assembly) — Recall 25V607, Third-Row Side Curtain Airbag Improper Deployment (FMVSS 226 Failure) — Recall 26V034, 3.8L Lambda II Excessive Oil Consumption Leading to Rod Bearing Wear and P1326 (KSDS) Limp Mode. Of these, 4 are rated critical and should be addressed promptly.

Is the Hyundai Palisade reliable?

The 2021 Hyundai Palisade has 17 known issues documented across 1,450+ owner reports. 4 issues are rated critical: Seat Belt Buckle Fails to Latch (Out-of-Spec Buckle Assembly) — Recall 25V607 and Third-Row Side Curtain Airbag Improper Deployment (FMVSS 226 Failure) — Recall 26V034 and 3.8L Lambda II Excessive Oil Consumption Leading to Rod Bearing Wear and P1326 (KSDS) Limp Mode and Tow Hitch Wiring Harness Module Short Circuit Fire Risk — Recall 22V-633. Prospective buyers should inspect for these issues and factor potential repair costs into their purchase decision. Regular maintenance following the manufacturer's schedule helps prevent many common problems.

How much does it cost to fix common Hyundai Palisade problems?

Repair costs for known Hyundai Palisade issues range from $0 to $9,000, depending on the specific problem and whether you choose DIY or professional repair. Au7o provides step-by-step DIY maintenance guides that can help reduce repair costs.

What is the 2020-2025 Hyundai Palisade Seat Belt Buckle Fails to Latch (Out-of-Spec Buckle Assembly) — Recall 25V607?

NHTSA recall 25V-607 (Hyundai recall 283) covers certain model-year 2020-2025 Palisades. Front-row and second-row outer seat-belt buckle assemblies may contain out-of-specification components that interfere within the latch channel and increase friction, especially in cold temper… Severity: high.

What is the 2020-2025 Hyundai Palisade Third-Row Side Curtain Airbag Improper Deployment (FMVSS 226 Failure) — Recall 26V034?

NHTSA recall 26V-034 (Hyundai recall 292) covers certain model-year 2020-2025 Palisades that may not meet the third-row headform-displacement requirements of Federal Motor Vehicle Safety Standard No. 226, Ejection Mitigation. Hyundai and NHTSA testing produced third-row displacem… Severity: high.

All 17 Known Issues

Other Hyundai Models

Frequently Asked Questions

What are the most common Hyundai Palisade problems?

Is the Hyundai Palisade reliable?

How much does it cost to fix common Hyundai Palisade problems?

What is the 2020-2025 Hyundai Palisade Seat Belt Buckle Fails to Latch (Out-of-Spec Buckle Assembly) — Recall 25V607?

What is the 2020-2025 Hyundai Palisade Third-Row Side Curtain Airbag Improper Deployment (FMVSS 226 Failure) — Recall 26V034?

2020-2025 Hyundai Palisade: Seat Belt Buckle Fails to Latch (Out-of-Spec Buckle Assembly) — Recall 25V607#

2020-2025 Hyundai Palisade: Third-Row Side Curtain Airbag Improper Deployment (FMVSS 226 Failure) — Recall 26V034#

2020-2022 Hyundai Palisade: Forward Collision-Avoidance Assist Disabled by Blocked Lower-Bumper Radar / False Activations#

2020-2022 Hyundai Palisade: Tow Hitch Wiring Harness Module Short Circuit Fire Risk — Recall 22V-633#

2020-2023 Hyundai Palisade: Headlight Assembly Moisture Intrusion / Condensation#

2020-2023 Hyundai Palisade: Repeat 12V Battery Drain from Module Parasitic Draw (Body Control Module)#

2020-2025 Hyundai Palisade: Infotainment Screen Blackout & BlueLink Telematics Failures#

2020-2023 Hyundai Palisade: 3.8L Lambda II Excessive Oil Consumption Leading to Rod Bearing Wear and P1326 (KSDS) Limp Mode#

2020-2024 Hyundai Palisade: Oil Dilution / Gasoline Contamination in Engine Oil#

2020-2025 Hyundai Palisade: Panoramic Sunroof Drain Tube Kink / Headliner Water Intrusion and Track Rattle#

2020-2023 Hyundai Palisade: Power Liftgate Drive Unit / Gas Strut Housing Cracks and Fails#

2020-2025 Hyundai Palisade: 8-Speed Automatic Harsh Shifting / Delayed Downshift#

2020-2023 Hyundai Palisade: Windshield Cracks From Minor Stone Chips (Thin OE Laminated Glass)#

2020-2025 Hyundai Palisade: Self-Leveling Rear Shock Absorber Failure — Knocking / Thumping Over Bumps#

2020-2022 Hyundai Palisade: HTRAC AWD Highway Vibration — Propeller Shaft and AWD Coupling Assembly#

2020-2023 Hyundai Palisade: Premature and Uneven Rear Brake Pad Wear from Seized Caliper Guides / Corroded Abutment Clips#

2020-2021 Hyundai Palisade: Foul Cabin Odor from Headrests / Interior Materials#

What is the 2020-2023 Hyundai Palisade 3.8L Lambda II Excessive Oil Consumption Leading to Rod Bearing Wear and P1326 (KSDS) Limp Mode?