Some Palisade (LX2) vehicles may exhibit engine oil leakage at the engine oil filter housing assembly due to deterioration of the housing seal. Hyundai is extending the warranty coverage for the engine oil filter housing seal to 15 years / 180,000 miles from the date of original retail delivery or date of first use (whichever occurs first) and is valid for original and subsequent owners. Follow the procedure in this bulletin to replace the engine oil filter housing seal in order to address this condition.
full bulletin at NHTSA ↗2021 Hyundai Palisade engine problems
moderate Owners of the 2021 Hyundai Palisade have filed 28 NHTSA complaints about the engine at roughly $3,100 to repair (U.S. federal records, as of July 2026). Source: NHTSA Office of Defects Investigation. See engine across all vehicles →
Complaints
28
Recalls
0
Avg fix
$3,100
| Model year | engine complaints |
|---|---|
| 2020 Palisade | 75 |
| 2021 Palisade (this page) | 28 |
| 2022 Palisade | 29 |
| 2023 Palisade | 12 |
| 2024 Palisade | 8 |
| 2025 Palisade | 3 |
What stands out
Owners have filed 28 engine complaints with NHTSA against this vehicle, but no formal recall covers the issue — the federal record reflects what manufacturers have admitted, not everything owners are reporting.
Among the 7 model years of Hyundai Palisade in our records for engine problems, this one ranks #3 by owner-complaint volume.
Is there a fix? Manufacturer service bulletins
The manufacturer has issued service bulletins covering engine on this vehicle — documented repair instructions, service campaigns, or warranty extensions sent to dealers. A TSB isn't a recall (it's not a free safety remedy), but it's the manufacturer acknowledging the issue and how to fix it.
Some Palisade (LX2) vehicles may exhibit engine oil leakage at the engine oil filter housing assembly due to deterioration of the housing seal. Hyundai is extending the warranty coverage for the engine oil filter housing seal to 15 years / 180,000 miles from the date of original retail delivery or date of first use (whichever occurs first) and is valid for original and subsequent owners. Please note any vehicles within 15 years / 180,000 miles are covered by this TSB, even if the vehicle is still within the New Vehicle Limited Warranty (NVLW) of 5 years / 60,000 miles or Powertrain Warranty of 10 years / 100,000 miles (for the original owner).
full bulletin at NHTSA ↗Some Palisade (LX2) vehicles may exhibit engine oil leakage at the engine oil filter housing assembly due to deterioration of the housing seal. Hyundai is extending the warranty coverage for the engine oil filter housing seal to 15 years / 180,000 miles from the date of original retail delivery or date of first use (whichever occurs first) and is valid for original and subsequent owners. Follow the procedure in Technical Service Bulletin (TSB) 26-EM-012H to replace the engine oil filter housing seal in order to address this condition. Please note that any vehicles within 15 years / 180,000 miles are covered by this TSB, even if the vehicle is still within the New Vehicle Limited Warranty (NV
full bulletin at NHTSA ↗Certain Palisade (LX2) vehicles equipped with 3.8L GDI Lambda II engines may not meet engine-out NOx (Nitrogen Oxides) and Particulate Matter (PM) emission standards. This bulletin provides the service procedure to update the emission logic within the Engine Control Module (ECM) to improve engine-out NOx and PM emissions, so they are within permissible specifications. Additionally, improvements to reduce noise during engine start, and enhanced thermostat logic, are also included in the updated ECM software.
full bulletin at NHTSA ↗Certain Palisade (LX2) vehicles equipped with 3.8L GDI Lambda II engines may not meet engine-out NOx (Nitrogen Oxides) and Particulate Matter (PM) emission standards. The service procedure provides an update to the emission logic within the Engine Control Module (ECM) to improve engine-out NOx and PM emissions, so they are within permissible specifications. Additionally, improvements to reduce noise during engine start, and enhanced thermostat logic, are also included in the updated ECM software.
full bulletin at NHTSA ↗Source: NHTSA manufacturer communications. Bring the bulletin number to your dealer or shop.
The failure pattern owners describe
The overwhelming complaint across these 27 narratives is rapid, excessive oil consumption unrelated to visible external leaks. Owners report burning anywhere from over half a quart per 1,000 miles to extreme cases: 6 quarts in less than 3,000 miles, 1 liter per 70 miles, and 2 quarts required weekly. The trouble starts between 66,000 and 100,000 miles, sometimes visible early in ownership if the second owner inherits the problem.
The critical safety issue is the absence of a low oil warning light. Owners find zero oil on the dip stick with no dash alert whatsoever. One owner's engine shut down on a busy highway with grandchildren aboard; another had the car die while turning a corner. The engine makes tapping, knocking, or rattling noises as oil starvation progresses, but by then internal damage is likely advanced.
Dealers conduct "oil consumption tests," then give conflicting results—some declare Hyundai's acceptable threshold is 1 quart per 1,000 miles; others say findings are inconclusive. Combustion chamber cleaning is attempted but often worsens consumption. Owners wait months for engine replacement parts on backorder while making car payments on a non-functional vehicle. Hyundai refuses recall status, warranty denies coverage for non-original owners, and dealership service departments cite "we can't reproduce it" despite confirmed failures.
Same Hyundai Palisade engine reports on nearby years: 2020 · 2022 · 2023
Failure modes owners describe
Excessive Oil Consumption
Engine burns oil at unsustainable rates with no visible external leaks. Owners report consumption ranging from over half a quart per 1,000 miles to extreme cases of 6 quarts in 3,000 miles or 1 liter per 70 miles. Dealership testing sometimes confirms consumption, other times disputes it or declares it 'within acceptable Hyundai standards.' Internal engine damage (piston rings, combustion chamber carbon buildup) is suspected but not always confirmed before engine failure occurs.
When: Starts at 66,000 to 100,000 miles; some owners notice it early in ownership (within 2,000 miles of an oil change) despite regular maintenance
Symptoms owners cite: Oil level drops between scheduled changes; No check oil light or warning indicator, even when oil is completely depleted; Engine knocking, tapping, or rattling noise under hood; Rough running or stuttering when oil is low; Engine light illuminates once oil is dangerously low
Codes mentioned: P0087, P219E
Repairs/costs cited: Dealership responses vary: combustion chamber cleaning attempted (owners report it worsens consumption); oil filter housing replacement performed in at least one case due to leaking; multiple owners waiting for or requiring full engine replacement; costs include $900+ for non-warranty repairs on first visits, plus ongoing service and extended warranty denial
Recalls/TSBs owners mention: Hyundai declares up to 1 quart per 1,000 miles as 'normal' and 'acceptable.' Oil consumption testing conducted by dealerships, but results often inconclusive or disputed by owners. Engine replacement authorized by some dealers under warranty; others deny coverage citing previous owner status or excessive consumption thresholds. Hyundai Motor America contacted by owners; no resolution reported. Technical Service Bulletins issued for coolant leaks but oil consumption not addressed via formal recall.
Sudden Loss of Power and Stalling While Driving
Engine shuts off or loses power unexpectedly during normal driving—at stop lights, highway speeds, while turning, or while idling. No warning lights activate before the failure. Vehicle either dies completely or limps home at reduced power. Owners describe this as a safety hazard, particularly with family in the vehicle or on busy highways with commercial traffic.
When: Occurs at various mileages (30K to 107K miles); in some cases, triggers happen within weeks of the previous service visit addressing oil issues
Symptoms owners cite: Engine stalls at stop light, in reverse, or while idling in park; Sudden loss of power while driving (highway and surface streets); Engine sputtering or jerking before shut-off; Delayed acceleration after stops; Vehicle lurches or shakes during operation; No warning lights prior to event
Repairs/costs cited: Dealership unable to duplicate issue on multiple visits; no repairs performed; owners told to drive vehicle 1,000 miles and return, despite confirmed unsafe condition; one owner was told out-of-pocket engine teardown would be required to diagnose; engine replacement eventually recommended after oil starvation suspected
Recalls/TSBs owners mention: Dealerships dismiss issue when no error codes present or when unable to reproduce failure in service bay. No recalls issued. One owner states Hyundai Motor America offered 'no assistance' despite notification of failure.
Oil Filter Housing Leak
Plastic oil filter housing warps and does not create a proper seal with the filter element, causing oil to leak. Owners note the leak is more pronounced in cold weather as the plastic shrinks further. Oil leak poses fire hazard risk if oil contacts hot engine surfaces.
When: Reported at unspecified mileages; one case involves housing replacement at approximately 99,500 miles
Symptoms owners cite: Visible oil leak from filter housing area; More noticeable during cold weather operation; Oil fumes in engine bay
Repairs/costs cited: Oil filter housing unit replacement performed under warranty at dealership; oil change completed during repair
Recalls/TSBs owners mention: Warped plastic housing replaced under warranty in at least one documented case.
Fuel Injector Failure
One or more fuel injectors fail or accumulate carbon deposits, leading to lean-running conditions and check engine light. At least one owner reports dealership stating all 6 injectors require replacement despite initial diagnosis of single injector failure.
When: Reported at approximately 90,000 miles in one case; symptoms began prior to December 2025
Symptoms owners cite: Check engine light illuminates; Engine hesitation or stumbling; Vehicle stalls when idling; Delayed acceleration
Codes mentioned: P0087, P219E
Repairs/costs cited: Dealership recommended cleaning for carbon buildup in combustion chamber as interim measure; full injector replacement may exceed warranty coverage
Recalls/TSBs owners mention: Warranty does not cover all injectors; owners required to request goodwill coverage or pay out of pocket.
Coolant Leak from Radiator
Coolant leaks from radiator, and fumes enter the cabin. Technical Service Bulletin exists for this issue on Hyundai Palisades, but dealership and Hyundai corporate initially denied coverage.
When: Timing not specified by owner
Symptoms owners cite: Coolant odor/fumes inside vehicle cabin; Empty coolant reservoir; Visible coolant leak from radiator
Repairs/costs cited: Owner informed dealership and Hyundai corporate of TSB; initially denied warranty coverage
Recalls/TSBs owners mention: Technical Service Bulletin issued but not applied as warranty repair. Owner states both dealer and Hyundai corporate ignored complaint and denied coverage despite known issue documentation.
No Low Oil Warning Light
Vehicle lacks a functional or illuminated low oil warning indicator. Even when oil level is critically low or completely depleted, no dash light alerts the driver. This creates a dangerous situation where owners must manually check oil or rely on engine noise to detect low levels.
When: Persistent throughout ownership on multiple vehicles with this issue
Symptoms owners cite: No check oil light on dash when oil is low or absent; No warning indicator illuminates until engine is nearly starved; Owner must rely on dip stick checks or tapping/knocking sounds to detect low oil
Repairs/costs cited: No repair noted; appears to be a design or software limitation rather than a repairable defect
Recalls/TSBs owners mention: No manufacturer response documented; no recall or technical bulletin issued to address missing warning light functionality.
Synthesized from 28 NHTSA owner complaints — unverified consumer allegations, summarized for patterns. The verbatim filings appear below.
What owners are reporting 1 most recent
The engine failed due to excessive oil consumption/internal oil loss. The engine is currently installed in the vehicle and available for inspection upon request. The issue began while the vehicle was under warranty and has progressed to the point where engine replacement has been recommended. Ongoing oil loss and engine malfunction created a risk of sudden engine failure or loss of power while…
Had engine trouble with your 2021 Hyundai Palisade?
File a complaint with NHTSA → It's free, official, and how every report above got here — owner filings are the federal safety record this page is built on.
Common questions
How serious is the engine problem on the 2021 Hyundai Palisade?
It's a documented issue but not catastrophic. 28 complaints have been filed. Repairs average $3,100 and most owners catch it before it causes a breakdown.
At what mileage does the engine typically fail?
Based on the 28 complaints filed, engine issues most often appear around 107,000 miles. Some report problems earlier; some make it well past 150,000 with no symptoms. Maintenance habits matter — vehicles that received timely fluid services and were not regularly overworked tend to last longer.
What does it cost to fix?
Independent shops typically charge around $3,100 for engine repairs on this vehicle. Dealer pricing tends to run 20-40% higher. The exact figure depends on the specific failure mode, parts availability, and your local labor rates. If you're outside factory warranty, an extended service contract often covers this category.
Are there any recalls related to engine?
No active recalls currently cover engine issues on this vehicle. The complaints filed represent owner-reported failures that haven't risen to the level of a manufacturer-issued recall — but they're still worth knowing about before you buy or budget for repairs.
Related
Complaint and recall data sourced from the National Highway Traffic Safety Administration (NHTSA)
public records database. Verify the raw federal record at
nhtsa.gov/vehicle/2021/Hyundai/Palisade.
Severity ratings are derived from reported crashes, fires, injuries, and fatalities. Repair cost estimates are
independent-shop national averages and may differ in your area. Some links on this page are affiliate links.