A flagship three-row SUV that sold out fast in South Korea, gained a 2022 facelift, returned as a hybrid in 2024 and faced a 2026 recall.
The Palisade is Hyundai's three-row flagship SUV, built since late 2018. Its second generation, unveiled in December 2024, added hybrid power. Sales in North America paused over a seat-folding fault until an April 2026 software fix.
The Hyundai Palisade is a three-row mid-size crossover that Hyundai has built since late 2018 as its flagship SUV. The first generation was a strong seller in South Korea, and the second generation arrived in December 2024 with hybrid power. A March 2026 stop-sale and recall covering North America was lifted in April after a software fix.
Where did the Palisade come from?
The Palisade replaced the Maxcruz as Hyundai's largest and flagship SUV, and it is sold as the Santa Fe XL outside South Korea. Its name refers to a bluff or cliff beside water, and Hyundai linked it to Pacific Palisades in Southern California.
Hyundai previewed the car as the Grandmaster concept in June 2018. The finished model was shown at the Los Angeles show in late November 2018, and South Korean sales opened in December.
A three-row flagship that went from a sold-out first generation to a hybrid second generation in six years.
How much room did the first-generation Palisade offer?
The first-generation Palisade, codenamed LX2, could seat eight passengers with a second-row bench or seven with the optional captain's chairs. Behind the third row it offered 595 litres (21 cu ft) of cargo space, which grew to 2,464 litres (87 cu ft) with both rear rows folded.
At launch the car measured 4,980 mm (196.1 in) long on a 2,900 mm (114.2 in) wheelbase, which made it the largest SUV in Hyundai's range. Its drag coefficient was 0.33, and North American cars came with a 3.8-litre Atkinson-cycle V6 with Idle Stop and Go.
The Insurance Institute for Highway Safety gave the model its Top Safety Pick award and, for the 2021 to 2023 model years, its Top Safety Pick+ award.
How did the Palisade sell in South Korea?
Korean dealers received the model on 11 December 2018 as the brand's top SUV, offered with a 2.2-litre diesel or a 3.8-litre petrol engine. It sold faster than expected, passing 52,000 units by February 2019. Demand outran supply so badly that buyers could wait up to nine months during 2019.
The K-pop group BTS became the face of the model in advertising, appearing in numerous commercials and campaigns in South Korea and the United States.
Where else was the first-generation Palisade sold?
The first generation spread across Asia, Oceania, Russia and Africa. Right-hand-drive production began in December 2020, first for Australia and Indonesia, and Avtotor assembled the car locally in Kaliningrad, Russia, from 2020.
Singapore received an eight-seat version with a 3.5-litre V6 in April 2021, and Malaysia followed in December 2021 with Luxe and Exec variants. The Philippines had launched earlier, in April 2019, with a single 2.2-litre diesel seven-seat model.
New Zealand launched in January 2021 with Elite (eight seats) and Limited (seven seats) trims. Engines were a 3.8-litre V6 petrol in 2WD form or a 2.2-litre turbo-diesel with AWD. South Africa followed in August 2021 with an Elite-only model.
Vietnam began sales in September 2023, with local assembly at the HTMV plant in Ninh Binh. Thailand received a facelifted car in November 2024, imported from Vietnam.
What did the 2022 facelift change?
The updated car was revealed in New York on 13 April 2022, ahead of the 2023 North American model year. The front end was restyled, and the infotainment system gained 12-inch navigation.
South Korean cars followed on 19 May 2022. Their changes included thicker sound-absorbing material and an improved shock-absorbing device, with Digital Key 2 and second-row ventilated seats offered as options.
Australian buyers saw the standard trim disappear in August 2022, and the Highlander's place went to the Calligraphy, which offers a Black Ink styling package.
How did the second generation change the Palisade?
The second-generation LX3 was unveiled on 6 December 2024 with a boxy body, vertical LED headlights and a rear wiper hidden under the roof spoiler. A faux skid plate on the lower rear bumper conceals the exhaust pipes.
Inside, a 12.3-inch touchscreen and a matching instrument screen sit in a wraparound dashboard. The centre console is separate from the dash, creating storage below, and it carries a wireless charger and a 100W USB outlet. The gear selector moved from the console to the steering column.
South Korea was the first market to offer a nine-seat layout. The front centre console folds down to form a middle seat, and nine-seat cars can use the country's bus-only lanes. Captain's chairs are an option for the second row, and the third row comes as a 60:40 split bench.
Pre-orders in Korea began on 20 December 2024, and deliveries started a month later. Roughly 45,000 orders arrived in that first month, around 70% of them for hybrids and about 40% for nine-seaters.
Where is the second-generation Palisade on sale?
The second generation reached Indonesia in June 2025, the Philippines in July 2025 and Australia at the end of September 2025. Saudi Arabia followed in September 2025, and the United Arab Emirates received it through an exclusive distributor later that year.
In North America the 2026 model was revealed at the New York show in April 2025. Judges at the Detroit Auto Show crowned it North American Utility Vehicle of the Year in January 2026, beating the Lucid Gravity and Nissan Leaf.
What engines does the 2026 Palisade use?
North American cars use a 3.5-litre V6 with an eight-speed automatic, the same Smartstream G3.5 found in the fourth-generation Kia Carnival. An all-new hybrid pairs a 2.5-litre turbocharged four-cylinder with electric motors and a six-speed automatic.
Towing ratings are 5,000 pounds for the V6 and 4,000 pounds for the hybrid. In Australia the hybrid runs in Calligraphy trim with seven or eight seats, and the seven-seat layout adds electrically adjustable second-row seats with a reclining relaxation mode.
A new XRT Pro trim is aimed at rougher ground than the earlier XRT. Its off-road figures include 8.4 inches of clearance, approach and departure angles of 20.5 and 22.4 degrees, a breakover angle of 18.3 degrees, and recovery hooks at both ends.
Did the second-generation Palisade have a recall?
A stop-sale and recall followed in March 2026, touching roughly 69,000 Palisade and Palisade Hybrid cars from the 2026 model year in the United States and Canada. The affected cars were in the Limited and Calligraphy trims.
The fault sat in the power-folding second- and third-row seats, which could fail to sense a person or item in their path. A young child died in the United States, and Hyundai reported further injuries. In Korea the transport ministry ordered its own recall of roughly 58,000 hybrids, and the Kia Telluride shares the problem.
Hyundai's remedy was an over-the-air update that sharpens detection and blocks seat folding from the touchscreen. Owners must now open the tailgate and press and hold the physical switches to fold the seats. Sales resumed in April 2026, once the stop-sale was lifted.
Hyundai Palisade specifications at a glance
| Feature | First generation (LX2, 2018) | Second generation (LX3, 2024) |
|---|---|---|
| Launch | South Korea, 11 December 2018 | Korean pre-orders from 20 December 2024 |
| Seating | Seven or eight | Seven or eight; nine in South Korea |
| Engines | 2.2-litre turbo-diesel; 3.8-litre V6 petrol in some markets | 3.5-litre V6 (North America); 2.5-litre turbo hybrid |
| Length and wheelbase | 4,980 mm (196.1 in); 2,900 mm (114.2 in) | Not given |
| Cargo behind third row | 595 L (21 cu ft); 2,464 L (87 cu ft) folded | Not given |
| Drag coefficient | 0.33 | Not given |
| Towing (North America) | Not given | 5,000 lb (V6); 4,000 lb (hybrid) |
| Recall | None noted | March 2026 stop-sale, about 69,000 vehicles in US and Canada |
