Hyundai has lifted its stop-sale on the 2026 Palisade, resuming shipments of the three-row SUV now that dealers have a software fix for the power-seat defect that halted sales in the first place. The stop-sale covered roughly 68,500 vehicles across the US and Canada and stretched across several weeks this spring before Hyundai finalized the remedy.

The issue involved the power-folding second and third-row seats on Palisade Limited and Calligraphy trims, which in some cases could continue moving even after detecting a person or object in the way. Hyundai halted sales of the affected trims on March 16, 2026, according to CBS News’ original coverage, after a 2-year-old girl died in an incident involving a Palisade’s power seat in Ohio the previous week. Hyundai said at the time the incident was still under investigation and that it lacked complete details, and the National Highway Traffic Safety Administration confirmed it was in contact with the automaker to gather information. The fix is now finalized, validated, and in owners’ hands.

Key Points

• The stop-sale covered 60,515 US-built vehicles and 7,967 in Canada — 68,482 total — specifically 2026 Palisade Limited and Calligraphy trims with power second- and third-row seats.
• Hyundai’s fix is a software update that changes how the seats operate rather than a hardware replacement.
• The remedy requires the liftgate to be open before the fold-flat feature will work, removes one-touch seat controls from the touchscreen entirely, and converts physical seat buttons from one-touch to press-and-hold.
• Hyundai also strengthened the seats’ occupant and object detection as part of the same update, according to Cars.com’s reporting on the resolution.
• Sales resumed once the fix was validated and available at dealerships, roughly a month after the original halt.

The repair itself is entirely software-based and delivered two ways: over the air for owners enrolled in Hyundai’s Bluelink connected-car service, or through a free dealer visit for everyone else, according to Kelley Blue Book’s coverage of the resumed sales. Hyundai listed the update under recall number 296, with owners able to call 855-371-9460 for details. The new logic means a Palisade’s power seats simply won’t do things they used to do with a single tap — folding flat now requires the liftgate open, and most seat-motor functions require holding a button down rather than tapping it once, both changes aimed directly at preventing the seat from moving unattended.

What Owners Should Do

• Check your BlueLink app or account for a pending software update notification if your Palisade has an active connected-services subscription.
• If you don’t use BlueLink, contact a Hyundai dealer to schedule the free software update under recall #296.
• Confirm your specific VIN has received the update before relying on one-touch seat-folding features — until then, treat the second- and third-row power seats with the same caution Hyundai’s original advisory recommended: keep people and objects clear during operation.

Hyundai hasn’t said how much the roughly month-long stop-sale cost it in lost Palisade volume, but the bigger cost was almost certainly to consumer confidence in a segment where family buyers are especially safety-conscious. Getting a validated fix out and sales moving again is the right next step; owners who haven’t yet confirmed their vehicle got the update are the one group still carrying open risk.