- Hyundai is recalling nearly 600,000 Palisade SUVs.
- Their side curtain airbags may not deploy properly.
- A stop sale order is in place for 2020-2025 MY vehicles.
The Palisade is one of Hyundai’s best-selling vehicles in America, but the model is now subject to a stop sale order and recall. This is because the crossovers have side curtain airbags that can deploy improperly during a crash.
The issue impacts 568,576 vehicles from the 2020-2025 model year, meaning the redesigned Palisade isn’t involved. While that’s good news for Hyundai, a quick search reveals dealers still have hundreds of units in inventory.
More: US Warns Repaired Cars Could Be Hiding Deadly Chinese Airbags
According to the National Highway Traffic Safety Administration, a 2025 Palisade failed a routine compliance test as the “measured displacement of the ejected headform in the third-row seating area exceeded the 3.9-inch (100 mm) performance limit.” This kicked off an investigation, which is still ongoing.
The NHTSA conducted another test in November of 2025 and it produced results similar to those found in April. Hyundai then ran their own tests – using multiple trims – and found that, in certain instances, the Palisade would fail to meet the Federal Motor Vehicle Safety Standard for ejection mitigation.
Hyundai is working on a fix, but 100% of the recalled vehicles are believed to have the defect, which involves side curtain airbags for the third-row. While little is known about the problem at this point, initial owner notifications are scheduled to go out on March 23.
In the meantime, Hyundai has enacted a stop sale order for impacted vehicles. 633 are on dealership lots and they’ll be sitting there for the foreseeable future, until a remedy is developed.
