Short answer: The biggest problems with the 2021 Hyundai Palisade are electrical system issues, transmission problems, and brake issues.
Electrical system issues are the most common while transmission and brake issues aren’t as common. Hyundai has issued six recalls for this vehicle.
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Common 2021 Hyundai Palisade Problems
2021 Hyundai Palisade Electrical System Problems
Owners have reported camera image problems, infotainment glitches, and instrument cluster warnings.
Rearview Camera Display Issues
- Severity: Mild to moderate; a blurry, fuzzy, lined, blue, or blank camera image can reduce visibility while reversing and make parking less safe.
- Manufacturer’s Response: Hyundai issued TSB 10189804, which addresses rearview camera image quality issues, including distorted or abnormal display images caused by wiring or camera-related faults.
- Fix: Dealers may inspect wiring connections, repair damaged harnesses, replace the camera if needed, and perform software updates.
2021 Hyundai Palisade Transmission Issues
Owners have reported shifter malfunction issues, incorrect gear display, and range sensor faults.
Problems Shifting Gears
- Severity: Moderate to severe; inability to shift properly can leave the driver stranded or unable to safely operate the vehicle.
- Manufacturer’s Response: Hyundai issued TSB 10253275, which addresses gear range sensor / shift-by-wire concerns, including incorrect gear display, shifting faults, and transmission warning messages.
- Fix: Hyundai will inspect and repair any damaged transmission components.
2021 Hyundai Palisade Brake Problems
Owners have reported problems involving brake pedal feel and reduced braking performance. Hyundai has also issued a recall for brake fluid contamination.
Brake Fluid Contamination
- Severity: Severe; Hyundai stated contaminated brake fluid may cause the master cylinder seals to swell, leading to increased pedal travel, altered brake feel, and longer stopping distances.
- Manufacturer’s Response: Hyundai issued NHTSA Recall #21V-840 for this issue.
- Fix: Dealers will flush the brake fluid, replace the brake master cylinder, refill and bleed the system, and perform brake system checks.

Notes from Palisade Owners
NHTSA Complaint
“Brake pedal intermittently goes soft or does not respond properly. Dealership flushed brake lines but issue returned within weeks. No ABS or brake system warning lights are triggered. Safety is a concern due to potential brake failure and lack of system alerts.
Kelley Blue Book Complaint
“My Palisade has been to the dealer 5 times for an annoying vibration at highway speeds. You feel it throughout the car. The “hum” noise from the vibration is embarrassing. Found out it is a common problem Hyundai knows about, but isn’t fixing (or can’t). They tried a service bulletin fix for driveshaft/coupler (and everything else under the sun), but it doesn’t work. It is for sale, but after people test drive nobody buys.”
NHTSA Complaint
“On 01/12/24 my vehicle cut off while driving and wouldn’t allow me to shift from park to shift. The transmission also had a habit of jerking back and forth when under load going up a hill. Hyundai dealership suggested a transmission flush. After the flush the problem came back in May of 2024.”
The Path to Lemon Law Compensation
Lemon laws protect consumers when a manufacturer cannot repair a substantial vehicle defect within a reasonable number of attempts during the warranty period.
If a defect significantly affects the vehicle’s use, value, or safety, the owner may be entitled to a refund, replacement vehicle, or financial compensation. Persistent repair visits and lengthy time out of service are often important warning signs.
A vehicle does not need to be completely inoperable to qualify. Repeated warning lights, recurring drivability complaints, or long repair delays may all support a potential claim. If your vehicle continues to return to the dealership for the same unresolved issue, it may be worth having your situation reviewed.
| Affected Model | Average Lemon Law Settlement |
|---|---|
| 2021 Hyundai Palisade | $70,252 |
*Please note, the figures presented in the chart are approximations based on past case results and should not be interpreted as a prediction or guarantee. Each case is unique and requires personalized legal guidance.
Let the Lemon Law Experts Take Charge!
Dealing with a defective vehicle is frustrating and often time-consuming: if your vehicle continues to experience unresolved defects or excessive repair downtime, you may be entitled to compensation or a manufacturer buyback.
At the Lemon Law Experts, we fight hard for our clients and have experiencing bringing lemon law claims. Let us review your case and determine whether your vehicle qualifies! Call at (877) 921-3923 or fill out a contact form on our website today.
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