2021 Hyundai Palisade Engine Problems

I have been dealing with the oil consumption issues for this vehicle for about 2 years now. There are documented complaints and a class action lawsuit in California about this issue. Bottom line, the engine burns too much oil to be safely driven between oil changes without the owner checking and adding oil. My particular vehicle is burning just under 1 quart of oil per 1000 miles. Hyundai’s owner manual suggests changing the oil every 7,500 miles, but the oil capacity is under 6 quarts. At the current rate, I would run out of oil before the suggested oil change interval. This is a severe safety issue as engines require oil to run correctly, not overheat, and lubricate all the moving parts. The previous generation Hyundai models also had similar oil consumption issues. Those vehicles had a NHTSA campaign which resulted in Hyundai being responsible to fix the engines. I believe a recall is proper given the safety concerns noted above. At a minimum, Hyundai should stand by their work and fix the issues as they arise.

NHTSA ID

11766485

Incident

Sep 23, 2026

While driving down the freeway my first row sunroof exploded. Insurance wouldn’t cover it because it is a manufacturer defect, but Hyundai wouldn’t cover it because it “isn’t a manufacturer defect.” The temperature outside when the sunroof exploded was 74 degrees and it was cloudy. Then less than 2 months later my engine got a rod knock even with oil changes every 5k miles. No warning signs for either and no lights on the dash. It just started when I started it to leave for work one morning.

NHTSA ID

11764711

Incident

Jul 2, 2026

I am reporting a potential safety defect involving my 2021 Hyundai Palisade Calligraphy AWD. The vehicle has experienced repeated engine and drivability problems and multiple breakdowns following replacement of the engine by Hyundai. The original engine developed excessive oil consumption and was ultimately replaced by Hyundai with a new engine. Following the engine replacement, the vehicle experienced numerous additional mechanical problems and repair attempts, including engine rattling/pinging, intake-manifold replacement, oil valve-seal replacement, multiple cylinder misfires, ignition-system problems and an ignition-coil failure. Most concerning are repeated incidents involving severe shaking/lurching, loss of engine power, stalling and failure to restart. During one incident following repairs, the vehicle ran extremely rough, stalled and would not restart after approximately 20 miles of driving and had to be towed back to the dealership. During another incident, the vehicle experienced heavy shaking on startup, stalled and had severely limited power. Diagnostic history showed misfires involving multiple cylinders. On June 29, 2026, at approximately 103,671 miles, I was driving at approximately 50 mph when the vehicle began to lurch and shake, lost power, stalled and would not restart. The vehicle had to be towed back to the Hyundai dealership. The unexpected loss of propulsion and stalling while traveling at approximately 50 mph created a serious safety concern because I could no longer rely upon the vehicle to maintain power in traffic. The dealership subsequently identified an ignition-coil short/failure and replaced an ignition coil. The vehicle has nevertheless continued to experience additional mechanical problems. The vehicle is currently again at the Hyundai dealership. It has generated diagnostic code P0430 for Bank 2 catalyst efficiency below threshold, and Hyundai has recommended replacement of both catalytic converter/manifold assemblies. Th

NHTSA ID

11761344

Incident

Jun 29, 2026

What component or system failed or malfunctioned, and is it available for inspection upon request? Rear Exhaust System How was your safety or the safety of others put at risk? Fire hazard as it was similar to a blowtorch, melted several rear panels, lights and trim while driving. Has the problem been reproduced or confirmed by a dealer or independent service center? The dealership (Elyria Hyundai) requested a PA from Hyundai and it was authorized, but am having a very difficult time getting reimbursed. Has the vehicle or component been inspected by the manufacturer, police, insurance representatives or others? I am not sure what the dealership did with the exhaust. At one point, I had requested to keep it for evidence. There are pictures. I suggested having the manufacturer look at it or at least Hyundai. Were there any warning lamps, messages or other symptoms of the problem prior to the failure, and when did they first appear? There were no warnings. After a 2.5 hr trip, we got out; my children noticed the trim sticking out and melted off the rear right bumper. It was extremely hot to touch and the panels were bulging out from their normal position.

NHTSA ID

11761127

Incident

Jun 9, 2026

In the past two weeks, our 2021 Hyundai Palisade has shut off completely when driving. It has around 110,000 miles on it and was just purchased used (second owner) three months ago. At that time, the dealership had to fix a leak in the engine and did a complete oil change. Based on internet searches, we just checked the oil dipstick and it is COMPLETELY empty. We have NOT driven more than 3,000 miles since purchasing the vehicle and there is absolutely no oil left. Based on searches, it appears this is a fairly common, known issue and nothing is being done. It is incredibly dangerous that the car shut down while driving (on the highway, in the middle of a right-hand turn). Every single warning light lit up at once then the car completely shut off within a matter of seconds. Thankfully my husband was able to get to the side of the road and no accidents occurred, but this is terrifying and completely unacceptable. The car is going to be towed to the dealership to check for excessive oil consumption, but again, based on research, it appears that this is a known issue but Hyundai says it is "within acceptable limits." PLEASE DO SOMETHING ABOUT THIS BEFORE SOMEONE IS SERIOUSLY INJURED OR KILLED.

NHTSA ID

11757900

Incident

Aug 19, 2026

I had an oil change in Feb 2026 at 64000 miles. In June, I was driving the car and suddenly the car started jolting while I was idle and would turn off completely when I was stopped. This happened to me while driving on the freeway in traffic and also at a traffic light. I immediately went to the dealership and was told my car had no oil in it. Since the oil change I drove about 5900 miles. I was told there were no leaks so the issue was either the engine or that when I had the oil changed that they forgot to put the oil in. They advised to get an oil test. I drove 1000 miles and took the car back in today 8/11. I had the oil tested and I burned .4 quarts in the 1000 miles which was under the standards of 1 quart per 1000 miles in order to get the issue fixed. I was told that I needed to check my oil and add oil to the car when needed. I left the dealership confused because I have had this car for over a year and never had an issue with the oil or oil levels. I never had any oil indicator on my dashboard to alert me of any issue. I called back the advisor asking more questions because I did not understand how my car burned through so much oil that it was malfunctioning. After being talked to like an idiot about how it is my responsibility to make sure my car has oil, I was finally told that this palisade has a known issue for premature oil consumption once it hits 60000 miles. Then I was told there is no recall and the issue will only get worse and I have to wait till it hits 1 quart of oil burned in 1000 miles for anything to be done. I feel like this is extremely irresponsible of the company to know this issue exists with nothing being done or communicated to their customers and that it is a huge safety concern to not have any indication there is something wrong with the oil amount and my car could literally stop in the middle of the freeway. They are waiting to make the issue neglect from the customer so they are not held responsible for their vehicle's issue.

NHTSA ID

11756110

Incident

Aug 10, 2026

Excessive oil consumption. Oil tank empty at 3 oil changes. Car was stalling at stops. Oil was empty 5000 miles prior to next suggested oil change. No low oil indicator light alarm

NHTSA ID

11753534

Incident

Jul 24, 2026

In May 2025, I contacted Hyundai regarding excessive oil consumption in my 2021 Palisade. In June, Hyundai directed me to take the vehicle to a dealership for testing. Under TSB 23-EM-008H ([XXX]), a failed oil consumption test requires engine replacement. My vehicle is covered under Hyundai’s 10-year/100,000-mile powertrain warranty. I have provided complete maintenance records and receipts for every oil change since purchasing the vehicle. Despite this, Hyundai has repeatedly denied my claim, citing maintenance issues and gross negligence without justification. Hyundai’s own guidance states that oil changes may be performed every 7,000 to 10,000 miles under normal conditions. The repeated testing process has worsened the engine condition. In addition, the dealership has returned the vehicle with missing bolts, oil-related issues, and damage resulting from an improper rear window film installation. I have made numerous attempts to resolve this matter and obtain the warranty coverage to which I am entitled, but Hyundai and the dealership have failed to do so. I am requesting one of the following remedies: (1) a full engine replacement in accordance with the warranty and TSB requirements, (2) a replacement vehicle of equal or greater trim level, or (3) reimbursement of all costs associated with leasing, purchasing, maintaining, and repairing this vehicle. We purchased this vehicle based on Hyundai’s reputation, ratings, and promise of “America’s Best Warranty.” We still like the vehicle itself, but the ongoing mechanical issues and Hyundai’s handling of this claim have been unacceptable. INFORMATION REDACTED PURSUANT TO THE FREEDOM OF INFORMATION ACT (FOIA), 5 U.S.C. 552(B)(6)

NHTSA ID

11753118

Incident

May 19, 2025

My Hyundai Palisade was bought brand new in 2020. It currently has 131,500 miles on it. I noticed at around 110,000 miles that my oil was getting low before each oil change. I check my oil frequently. No oil leaks can be found. So the engine is burning oil somehow. My mechanic says Hyundai says its acceptable for it to burn oil after 100,000 miles but 2 quarts between oil changes seems excessive. Ive talked to other Palisade owners who have this year model and have the same issue. If I were not a responsible consumer and checked my oil as frequently as I do then its very possible another consumer could have burned their engine up before they knew what was happening because there is no leak just burning of the oil. This is very dangerous.

NHTSA ID

11740741

Incident

Oct 31, 2025

Multiple attempts to have car repaired for a year and a half with no resolution. See attached docs. Included is a letter to Hyundai, timeline of subsequent events, warranty info. Invoices were too large to upload, there are 7 of them.

NHTSA ID

11740607

Incident

Oct 24, 2024

After emissions campaign 9c9, downshifting using paddle shifters on downhill grades, engine failing to maintain speed. Does not slow car down like it did before, seems like no compression. Fuel efficiency / emissions over traditional transmission braking, forcing drivers to use brakes more often to avoid high RPMs. Safety Risk: The lack of engine braking can lead to brake overheating or fade on long downgrades, lack of engine braking can lead to brake overheating or fade on long downgrades. Above is what Google found [XXX] ) when i put in some key words. Here is what i wrote to a [XXX] . my 2021 Hyundai Palisade Campaign 9C in your article about the 2022 having the same downshifting issues after the Emissions recall was done. Have you heard from other 2021 owners? I use the downshift for breaking/keeping my speed down to save the breaks here in the [XXX] , [XXX] , and [XXX] mountains. Does not function as designed. "Loss of engine braking" " High Engine Revving" Did go back to dealer and drove tech around lot. I called back later and nothing they can do. 5/12/26 Went to the dealer again, for an appointment. Dealer service manager said it working as designed. Bull, was not that way before. He said if i don't like it, trade in the car.. He also said that I can't compare the Palasade to the other cars that have manual shifting. bull. I said Why have them if they don't do anything... Tried to explain that I have been driving for over 40 years and have always downshifted every car. This was fine until the emissions recall. Got no place with the dealer. Contacted Hyundai Corporate last week, and they should be following up on Wednesday/tomorrow. 5/13/26 Left VM for Sales GM at Bowser today where i purchase the car. Wrote above and more to: [XXX] Contacting you now. INFORMATION REDACTED PURSUANT TO THE FREEDOM OF INFORMATION ACT (FOIA), 5 U.S.C. 552(B)(6)

NHTSA ID

11737384

Incident

Apr 9, 2026

The vehicle would shut off when idling at lights or in reverse and have delayed acceleration after stops. It also would shut off when idling in park. I took it to the dealership summer-fall 2025 and they were too busy to investigate the issue because no alarms were present. The vehicle started doing the same thing and the check engine light came on March 2026. Now it has been in the shop for many weeks because of an fuel injector issue. The dealership service department says all 6 injectors need to be replace, but warranty won't cover them all. This appears to be a common issue with 2021 Hyundai Palisade vehicles and should be investigated for a safety recall.

NHTSA ID

11734796

Incident

Mar 14, 2026

The engine oil system failed due to a persistent oil leak that was present from the time of purchase on December 16th 2024. The vehicle is available for inspection upon request and is currently immobile due to a completely seized engine. My safety was put at serious risk because the vehicle has no functioning low oil warning indicator to alert the driver of critically low oil levels. I was driving this vehicle regularly for work with no indication whatsoever that the engine was losing oil. A seized engine can cause sudden and complete loss of vehicle control which puts not only the driver but other drivers and pedestrians at risk. This failure occurred without any warning while the vehicle was in regular use. The oil leak was brought to the selling dealership, Auto Merchants Inc. in Plano Texas, for repair on January 6th 2026. They kept the vehicle overnight and confirmed it was fixed. The problem was not resolved as the vehicle continued losing oil. On March 3rd 2026 I discovered the engine was completely empty and added 6 full quarts of oil with no warning light appearing. I also contacted Hyundai consumer affairs and the Hyundai dealership directly who confirmed the manufacturer warranty had already expired at the time of purchase on December 16th 2024 and declined to cover the repair. The vehicle has not yet been formally inspected by the manufacturer or insurance representatives. The dealership serviced it on January 6th 2026 and claimed the leak was repaired however the engine seized on April 20th 2026 due to continued oil loss. There were zero warning lamps or indicators of any kind prior to the engine seizing completely on April 20th 2026. No low oil warning light appeared at any point during the 4 months I owned this vehicle despite the engine running completely out of oil on three separate occasions. The only symptom prior to full engine seizure was the vehicle sputtering when coming to a stop on April 19th 2026, one day before the engine seized completely

NHTSA ID

11733162

Incident

Apr 20, 2026

I have been having an issue with my 2021 Hyundai Palisade's engine oil consumption. It is constantly burning oil at a high rate, requiring me to purchase oil constantly. I had it serviced at Hyundai in Gurnee, IL. An oil consumption test was conducted. Hyundai corporate stated that my vehicle's engine was not burning oil at the required rate, which prompted an engine replacement. I reached out to corporate because the issue is persisting, but they never responded to my concern. This issue is costing me a significant amount of money, as I have to purchase oil without a remedy from Hyundai regarding my engine oil consumption. As a consumer, it's frustrating because I left without answers on an issue they definitely know about.

NHTSA ID

11730566

Incident

Apr 11, 2026

The vehicle suffered a structural "seam leak" on the pressurized oil filter housing. This was verified by an authorized Hyundai dealer (Dealer XXX, Invoice #XXX). The failure is a structural crack in the housing component itself, not a maintenance-related seal or filter failure. This defect causes pressurized engine oil to spray directly onto the hot engine block while the vehicle is in operation, creating a severe and immediate fire hazard. Additionally, the rapid loss of oil and oil pressure poses a risk of sudden engine seizure or stalling at highway speeds, which could lead to a crash. Despite being a known manufacturing defect in a critical engine component, the manufacturer has refused to address the safety implications or offer a remedy. INFORMATION REDACTED PURSUANT TO THE FREEDOM OF INFORMATION ACT (FOIA), 5 U.S.C. 552(B)(6)

NHTSA ID

11729793

Incident

Mar 20, 2026

A week or so after taking the car in for an oil change, I was on the highway and heard a rattling sound coming from the engine. There were no indicator or warning lights from the dashboard. The car then stopped accelerating. It was on, and the accelerator increased the RPMs but the car did not move faster. I safely got home and checked the oil and it had less than a quart. There were no low-oil indicator lights telling me the oil was low. Separately, this week, while driving in the city, the engine again started making rattling sounds and completely shut off forcing me to pull off the road. Again, prior to the shut off there were no indicator lights. I was able to pull to the side of the road safely. I tried to restart the car and it would idle roughly befor the engine shut off again. After waiting 30 minutes, I checked the oil to see if the previous cause was the culprit, but this time the oil was still full. After 45 minutes, I was able to restart the car and drive home. I researched the issue and there are many complaints on Reddit about this for this make and model. Since the issue is intermittent and can't be replicated at the dealership, there is no fix offered. I no longer trust or feel safe driving this car, especially on highways.

NHTSA ID

11728587

Incident

Mar 31, 2026

While the vehicle was off and in my garage, the vehicle started on its own and was idling at an extremely high RPM. I was the only person home, the keys were out of reach on a key rack and had not been driven yet for the day. I walked into the garage and found my vehicles engine running at a high RPM and all the electrical displays within the vehicle were compleltely off with only the engine running. I retrieved my keys and my only thought was to start the car, which I did which then brought the RPM down to standard idle. I am extremely concerned as a vehicle idling in an eclosed garage poses extremely high risk to Carbon Monoxide.

NHTSA ID

11727484

Incident

Mar 25, 2026

The car will start shaking, can’t exceed a certain mpg, and does not speed up. The check engine light comes on. The car is available for inspection. I drive on the freeway and slowing down, and shaking can cause accidents. This a continuous problem.

NHTSA ID

11726837

Incident

Mar 1, 2025

The engine in my 2021 Hyundai Palisade experienced sudden loss of oil leading to engine failure. The vehicle had been regularly serviced and maintained at a Hyundai dealership according to recommended intervals. During multiple service visits, the dealership informed me the vehicle was low on oil. An oil consumption test was performed but the results were inconclusive. At approximately 99,500 miles, the vehicle developed an oil leak which the dealership diagnosed as a gasket issue and repaired under warranty. An oil change was completed at that time. Approximately 5,000 miles later, while driving, the vehicle began experiencing loss of power and rough engine operation. I immediately drove the vehicle to the dealership. The dealership later informed me the engine had no oil in it when inspected. There were no active external leaks observed at that time. The dealership stated that it is “normal” for this engine to consume up to one quart of oil per 1,000 miles. The engine now requires full replacement due to internal damage caused by oil loss. This situation created a safety concern because the vehicle began losing power while in operation. The failure occurred suddenly without warning indicators prior to the loss of engine performance. The vehicle had documented oil level concerns during previous service visits, suggesting a potential excessive oil consumption or engine defect. The failed engine is currently available for inspection at the dealership.

NHTSA ID

11723272

Incident

Feb 20, 2026

Excessive oil consumption. The vehicle is burning nearly 4 quarts of oil between changes. This started at around 100,000 miles with no warning lights. The only indication was a strange tapping noise coming from the engine.

NHTSA ID

11722801

Incident

Jan 1, 2026

This vehicle is still using the defective style piston rings causing oil consumption of 1.5qts in 1000miles, With only 100,000miles. This has been ongoing since we purchased the vehicle with 94,000 miles. This needs to be issued as a recall to replace piston rings or the engine entirely. My valuemax level 4 extended warranty is refusing to repair the issue stating hyundai/kia has carbon buildup on the piston rings. This engine could run low on oil and cause a fire, or a engine shut down causing a crash.

NHTSA ID

11721125

Incident

Feb 20, 2026

We have been in Hyundai’s “oil consumption” protocol for the past 8-10 months. We’ve had 6 oil changes in that time. Each oil change was right a 1,000 miles. My engine is burning between 1.5 - 2.5 quarts of oil EVERY 1,000 MILES. They have been trying to drag this out not having to take ownership of the issue. After reading online, clearly there is an issue with 2021 Palisades and a recall needs to be issued.

NHTSA ID

11720993

Incident

May 1, 2025

The engine is burning oil at a rapid rate. It's burning one liter every 70 miles.

NHTSA ID

11719663

Incident

Jan 2, 2026

OIL FILTER HOUSING IS LEAKING. PLASTIC PART IS WARPED AND DOES NOT ALLOW FILTER TO SEAL. LEAKING OIL IS A FIRE HAZARD AND COULD CAUSE ENGINE FAILURE.

NHTSA ID

11719625

Incident

Feb 17, 2026

Engine burning 6qts in less than 3k miles of driving. Aside from that, the engine light does not always illuminate to tell me it is low. Now i watch monthly and add oil as needed

NHTSA ID

11718242

Incident

Mar 20, 2025