The 2026 Hyundai Palisade is offered in several trims aimed at families looking for a spacious three-row SUV. However, shoppers considering one right now may find that the two highest trims are unavailable.
Hyundai has instructed dealerships across the United States and Canada to stop selling the 2026 Palisade Limited and Calligraphy versions. The action was taken after the company identified a safety concern involving the power-operated seats in the second and third rows.
The problem centers on the rear seat power-folding system. In certain situations, the mechanism may fail to properly detect when a person or object is obstructing the seat as it moves. This potential malfunction can affect both the automatic folding function and the one-touch tilt-and-slide feature designed to provide easier access to the third row.
Hyundai explained that the decision comes after a tragic incident involving a Palisade in which a young child lost her life. The automaker said the case remains under investigation and that the full circumstances surrounding the event are still unclear. Hyundai expressed its condolences to the child’s family and emphasized that customer safety remains a top priority.
The company is preparing to submit a recall filing with the National Highway Traffic Safety Administration (NHTSA), although a formal recall announcement has not yet been issued.
The scope of the issue is substantial: approximately 68,500 units of the 2026 Palisade are believed to be affected. More than 60,000 of those vehicles are located in the United States, with close to 8,000 in Canada.
Hyundai is also working on a permanent remedy. Once finalized, dealers will perform the recall repair at no cost to owners. Until then, the automaker plans to deploy an over-the-air (OTA) software update before the end of March.
While it will not serve as the final solution, the update is intended to improve the system’s ability to detect people or objects during rear seat movement and introduce additional safety checks.
Hyundai has already begun contacting Palisade owners through email notifications, phone calls, and dealer outreach. Until a permanent fix becomes available, the company recommends that drivers take extra care when using the power seat controls. Owners are advised to confirm that no one, particularly children, is in the seat’s path before activating the mechanism.
The automaker also recommends avoiding the seatback button when using the second-row tilt-and-slide function, especially when passengers are entering or exiting the vehicle. For owners who prefer not to drive their Palisade until the issue is resolved, Hyundai says dealerships may be able to arrange rental vehicles.
This situation is not the first challenge faced by the Palisade. The previous generation, produced between 2020 and 2025, was subject to a recall related to airbag issues. That recall eventually led to a lawsuit and involved more than half a million SUVs.
