For the 2026 model year, Hyundai unveils the next generation Palisade, its flagship SUV. Already a top choice in near-luxury three-row SUVs, the updated Palisade enhances its appeal with a modern design, upgraded technology, and a sophisticated new interior. Now, the 2026 Palisade expands its lineup with its first-ever hybrid version.
Photo: Perry Stern
When I drove the new Palisade earlier this year, I was disappointed to find no improvement in performance. Hyundai addresses this issue with a next generation hybrid powertrain under the hood. Featuring significant improvements in power and fuel efficiency, the new Palisade Hybrid is clearly the best choice in the lineup.
Hyundai offers the 2026 Palisade Hybrid in four trim levels: SEL, SEL Premium, Limited, and Calligraphy. Standard equipment on the hybrid trims closely resembles what is included in the gas models. Each hybrid trim is available with either front-wheel (FWD) or all-wheel drive (AWD). Base prices range from around $46,000 to just over $60,000, including the destination charge.
For this 2026 Palisade review, Hyundai brought me to Austin, Texas, and provided a Palisade Hybrid Calligraphy AWD with optional floor mats. The test vehicle's manufacturer suggested retail price (MSRP) was $60,625, including the $1,600 destination charge to ship the SUV from the Ulsan, Korea, assembly plant to a local dealership. The price does not reflect any current rebates, incentives, or price adjustments since Hyundai manufactured the test vehicle.
Photo: Perry Stern
Unlike many car brands, Hyundai does not stick to one single design style across its entire lineup. With that in mind, the 2026 Palisade features a bold look that gives the big SUV a more upscale appearance, especially when compared to its predecessor. The new design includes a wide grille and distinctive lighting. The new Palisade Hybrid shares the same styling, distinguished only by a subtle hybrid badge on the rear.
If you ever need proof of how much the Hyundai brand has evolved since it first arrived in America 40 years ago, look at the 2026 Palisade Calligraphy. Soft Nappa leather covers the stylish front seats, and the two-tone leather on the dashboard, doors, and steering wheel elevates the cabin to luxury car levels. Adding to the inviting environment are curved surfaces everywhere—there are no sharp edges in sight.
The front-seat area is highlighted by the high-tech curved screen, which features dual 12.3-inch displays for the gauge cluster and infotainment system. Unlike most competitors with a similar setup, the Palisade's screen merges into the dashboard for a cleaner look. I appreciated that the climate controls are separate, with dedicated hard buttons and knobs for media and other infotainment functions.
For the 2026 model year, Hyundai relocates the gear selector to the steering column. This adjustment frees up space in the center console for a wireless smartphone charger, cupholders, and a cubby below the center armrest that features an UV-C ultraviolet light sterilization system. Additional storage below can easily fit a large bag or purse. Dual USB-C ports provide 100 watts of power for "Super Fast Charging," according to my phone.
The 2026 Palisade not only has an attractive cabin, it is also quite comfortable. The front seats offer multiple adjustments with heating and ventilation, and even after several hours behind the wheel, I felt no fatigue or stiffness.
The second-row captain's chairs are just as comfortable as those up front, and even rear seat passengers benefit from heated and ventilated seats. There is slightly less legroom in the hybrid because of the battery placement below the floor, but the space remains more than adequate for tall passengers. The rear seats in the Calligraphy also feature power adjustment.
Pressing a button on the second-row seat slides it forward, providing access to the third-row seat. Unfortunately, the power operation is quite slow, which could be frustrating for impatient children or when it is raining. However, once inside, the third row offers decent leg- and headroom. The seat is a bit narrow for three adults, but USB ports, cupholders, and heated outboard seats help make up for being relegated to the third row.
Since the hybrid battery is located under the passenger area, cargo space remains the same with either powertrain. Behind the third row, there is 19.1 cubic feet of storage, which is more than enough for a few suitcases. If more space is needed, the split third row folds down, providing 46.3 cubic feet of space.
Photo: Perry Stern
Hyundai offers one of the most user friendly infotainment systems available, and while it appears on a new 12.3-inch screen in the Palisade, the system's easy-to-use functionality remains. The infotainment display integrates smoothly with the digital gauge cluster and the large, clear head-up display.
Features of the infotainment system include:
Perhaps the most welcome addition for the 2026 model year is the integration of wireless connections for Android Auto and Apple CarPlay. While the Hyundai native system works well, I prefer the more familiar Android Auto, which connected quickly after I plugged in my Samsung Galaxy S23+.
A natural-voice interface comes standard on the Palisade Hybrid. While I prefer using Android Auto for navigation and communication, the Hyundai system works well for adjusting the cabin temperature or activating seat heaters and coolers. Pressing and releasing the voice button starts the Hyundai system; pressing and holding it brings up the voice interaction in Android Auto.
One of Hyundai's most innovative features is exclusive to the Palisade Hybrid. The Hybrid Stay Mode uses the hybrid drive battery, and allows you to operate vehicle accessories, including HVAC functions, for a longer period without starting the internal-combustion engine (ICE).
The battery must have at least a 35 percent charge for the system to operate. You can program the navigation system to ensure 80 percent charge remains when you reach your destination, allowing you to use the feature. With about 65 percent charge remaining, I was able to stay cool, recline the driver's seat, and play Spotify tunes through the Bose premium audio system for approximately 25 minutes. The dashboard display shows how much energy is being used and the remaining time.
Photo: Perry Stern
The 2026 Hyundai Palisade Hybrid features the Korean brand's latest hybrid system, which includes a turbocharged 2.5-liter four-cylinder engine paired with two electric motors. One motor, connected with the six-speed automatic transmission, supplies drive power and regenerative braking. In contrast, the second motor, attached to the ICE, acts as a starter/generator, providing propulsion help.
Overall, the system produces 329 horsepower and 339 pound-feet of torque. That is a notable increase from the non-hybrid Palisade, which offers 287 hp with its 3.5-liter V6. Interestingly, the more powerful hybrid has a tow capacity of 4,000 pounds, 1,000 pounds less than the gas-only model.
The Environmental Protection Agency (EPA) rates the 2026 Hyundai Palisade Hybrid AWD at an estimated 29 mpg combined, while the base level SEL FWD leads the lineup with an estimated 34 mpg combined. The trip computer in my Palisade Hybrid AWD showed 29.3 mpg, closely matching the EPA estimate. When I drove the less powerful non-hybrid Palisade earlier this year, it showed 18.5 mpg.
The added power of the hybrid powertrain was immediately noticeable when I started driving the Hyundai Palisade Hybrid through the streets of Austin, Texas. The big SUV did not seem to struggle to get going quickly from a stoplight, and accelerating up to 70 mph onto the highway was fast and smooth.
While the engine is slightly noisy during hard acceleration, the Palisade Hybrid's cabin stays quiet and calm, even on rougher pavement or at high speeds. The hybrid system works very effectively, providing smooth and predictable power. When there is little load on the engine, it switches almost seamlessly to running solely on the electric motors.
For a sizable three-row SUV, the Palisade Hybrid offers decent handling, although its weight is noticeable when pushed hard in a corner. The steering responds well, and while the Palisade Hybrid would not be my top pick for a fun drive up a winding mountain road, the big SUV felt solid and stable in the curves.
Photo: Perry Stern
Hyundai does not skimp on safety, and every Palisade Hybrid trim comes standard with the brand's SmartSense suite of advanced driver assistance systems (ADAS). SmartSense features include:
The top-level Calligraphy also features active blind spot warning, automatic emergency steering, and Highway Driving Assist 2 (HDA 2), Hyundai's most advanced semi-autonomous driving system.
Cruising on Highway 290 outside Johnson City, Texas, I set the adaptative cruise control to the 70-mph speed limit. HDA 2 uses ACC and lane centering to keep a safe distance from the car ahead while staying centered in the lane. The system works very well, delivering smooth, confident performance, but it is not hands-free. It will give warnings and eventually stop if the haptic sensors on the steering wheel do not detect a touch.
HDA 2 also includes an automatic lane change feature. Activate the turn signal, and the system will check when it is safe to change lanes. However, since you need to keep your hands on the wheel, this feature does not provide much benefit.
Although the Palisade Hybrid offers a wide range of ADAS, neither the National Highway Traffic Safety Administration (NHTSA) nor the Insurance Institute for Highway Safety (IIHS) has published crashworthiness ratings for the 2026 model at the time of writing.
According to the JD Power 2025 Initial Quality Study (IQS), the Kia Telluride ranks highest in the Upper Midsize SUV segment. The Subaru Ascent ranks second, and the Hyundai Palisade and the Nissan Pathfinder rank third (in a tie).
According to the JD Power 2025 Automotive Performance, Execution and Layout (APEAL) Study, the Dodge Durango and Hyundai Santa Fe rank highest (in a tie) in the Upper Midsize SUV segment. The Chevrolet Traverse is the next highest-ranked model.
Other 2026 Palisade competitors include the Ford Explorer, Honda Pilot, and Mazda CX-90.
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329
6 speed, Automatic w/OD
Turbo Gas/Electric I-4
All Wheel Drive, Front Wheel Drive
