2021 Hyundai Palisade Transmission Problems

Mileage when the problem started

Owner reports

Selected complaints filed with NHTSA by 2021 Hyundai Palisade owners, lightly cleaned up (personal details are redacted by NHTSA).

My vehicle experienced a sudden and immediate loss of motive power due to a catastrophic internal engine failure, creating a severe road safety hazard. While driving and attempting to accelerate or merge, the vehicle exhibits extreme hesitation, severe misfiring on cylinder #2, and rough, unstable idling. This unexpected loss of drive power made the vehicle unpredictable and unsafe to operate under normal driving conditions, significantly increasing the risk of a crash. The vehicle is currently at the Hyundai dealership (Fox Ann Arbor Hyundai) for diagnosis. The dealer has confirmed and documented the following internal mechanical defects at only 86,000 miles: Compression loss in cylinder #2. Cylinder wall scoring and pitting. Evidence of blow-by and heavy carbon buildup in the combustion chamber. Misfire and rough idle. Oil consumption as a result of the cylinder failure. …

I own a 2021 Hyundai Palisade and have experienced a complete transmission failure that I believe Hyundai had prior knowledge of and failed to address. Before my warranty expired, I contacted the dealership several times to report transmission symptoms I was experiencing. I was told that because no diagnostic code had been produced at that time, there was nothing they could do. Eventually, my check engine light came on with a P0741 code - Torque Converter Clutch Circuit Performance. When I brought the vehicle in, the dealer flushed the transmission fluid, which came out dark and contaminated with metal particles. After running the vehicle, the fluid was still dark, indicating active internal damage already in progress. The dealership has now told me I need a full transmission replacement at my own expense. I am the second owner of this vehicle with approximately 105,000 miles. …

The vehicle experienced premature transmission failure, including torque converter clutch malfunction, hesitation, jerking at speeds between 30-35 mph and 50-60 mph, and drivability issues. Diagnostic indicators are consistent with widespread complaints from other Hyundai Palisade owners. This failure presents a potential safety concern due to unpredictable vehicle response, hesitation during acceleration, and reduced control during highway driving. Dealer / Manufacturer Response: Hyundai Motor America requires an authorized dealer to submit a warranty or goodwill claim for review. The servicing dealer, Reliable Hyundai (Springfield, Missouri), has refused to submit the claim, preventing evaluation and resolution. This issue appears to be a known defect affecting multiple vehicles of the same model year. …

I own a 2021 Hyundai Palisade Calligraphy with approximately 114,000 miles. The transmission had to be replaced at around 98,000 miles. Recently, before my next scheduled oil change (I had about 1,000 miles left), my vehicle suddenly began making a loud knocking noise and lost power. The dealer informed me that the engine may have blown. There were no warning lights, oil indicators, or overheating signs before this happened. The car has been regularly maintained and serviced with timely oil changes. This appears to be a premature engine failure possibly related to oil consumption or an internal defect, as many other Palisade owners have reported similar issues. Hyundai Consumer Affairs has been contacted, and a case number is being opened for review. …

The vehicle suffered a structural "seam leak" on the pressurized oil filter housing. This was verified by an authorized Hyundai dealer (Dealer [redacted], Invoice #[redacted]). 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.

Vehicle experienced engine failure previously and received a Hyundai-installed replacement engine in February 2025. Replacement engine is now setting DTC P000A00 - Intake Camshaft Position Slow Response (Bank 1). Hyundai dealership master technician confirmed excessive variance between commanded and actual cam timing, indicating a VVT / cam timing failure controlled by oil and actuators. Hyundai is refusing to cover diagnosis and repair under replacement engine warranty and is requiring customer-paid tear-down despite fault originating within the engine assembly. Concern is for internal engine timing failure that may lead to engine damage or loss of power. This appears consistent with known Hyundai engine timing and oil control issues

Had my car in shop for over 30 days on my last visit, was there 4 other times. When you reach speeds of 62 mph to 73 mph car has vibration in seat and steering wheel along with feeling it. They rotated tires, replaced drive shaft, replaced rear differential and fluids. Was told to come get car there is nothing they can do about it. Called Hyundai filed a complaint and someone higher up was going to call me back within 10 days. Its now 12 days and no call. I called today and asked for the person to talk to and got a new phone number. Been trying to call her and cant get threw. Guess my next step is to tell Dealership about was is going on and contact my state to fill a report with them. Got 2,674 miles on car.

Sudden powertrain failure. Car started to decelerate on its own. The car started to vibrate when accelerator was pressed. Car was in high speed and could have stalled and the passengers could have been killed. Hyundai has refused to honor the powertrain warranty and has attributed the entire transmission failure to bad gas which is very very unlikely. Have contacted Hyundai USA and got no substantial help. Hudson Hyundai is the dealer and is notorious in their treatment of customers. The company needs to issue a recall of 2021 pallisades before a major accident.

The vehicle developed a vibration at speeds of 65-70 mph. It had less than 100 miles on it when it was first noticed. The dealership has balanced the tires twice, replaced the drive shaft, and replaced the rear coupler with no success. They do not know what's wrong with the vehicle. They are currently awaiting a read differential "to see" if that fixes it. They aren't sure that it will. The part is on backorder from Korea and the vehicle has been sitting at the dealership for weeks.

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.

Transmission complaints in other Palisade years