Hyundai has halted sales and recalled over 568,000 Palisade SUVs in the U.S. due to a faulty side curtain airbag affecting third‑row seats. Learn the latest updates and what owners should do.
Hyundai Motor America has issued an unprecedented stop‑sale order and launched a massive recall that affects 568,576 Palisade SUVs built between 2020 and 2025. The action follows the discovery of a defect in the side‑curtain airbag located behind the third‑row seats, which can deploy incorrectly during a crash.
What triggered the recall?
The National Highway Traffic Safety Administration (NHTSA) flagged the issue after a 2025‑model Palisade failed a mandatory compliance test. During the test, a dummy headform in the third‑row seat area moved more than the allowed 100 mm, indicating the airbag could rupture or detach when deployed.
A follow‑up test in November 2025 produced the same result, prompting NHTSA to open a formal investigation. Hyundai’s internal testing confirmed that, under certain impact scenarios, the curtain‑airbag system does not meet Federal Motor Vehicle Safety Standard requirements for preventing occupant ejection.
Scope of the recall
- Model years: 2020‑2025 (excluding the most recent redesign)
- Number of vehicles: 568,576 Palisade SUVs
- Primary defect: Side‑curtain airbag in the third‑row seat may deploy improperly
Impact on dealers and inventory
Dealerships across the United States have already set aside roughly 633 Palisade units that are now parked indefinitely. These vehicles will remain in inventory until Hyundai approves a fix and the repair can be performed on‑site.
Next steps for owners
Hyundai plans to start notifying affected owners beginning March 23. The notification will include details on how to schedule a free repair at authorized service centers. In the meantime, the company advises owners not to drive the recalled SUVs until the airbag issue is resolved.
What Hyundai is doing
The automaker is working closely with NHTSA and its engineering teams to develop a corrective solution. While the exact technical fix has not been disclosed, Hyundai has confirmed that the repair will address the curtain‑airbag deployment mechanism for all affected third‑row seat configurations.
Consumers can stay updated by visiting Hyundai’s official recall page or by contacting their local Hyundai dealer.