Since the Hyundai Palisade and its cousin, the Kia Telluride, were introduced for the 2020 model year, they’ve been excellent choices among three-row crossovers. For 2026, the Palisade gets a makeover, including the addition of a hybrid model. The new Palisade is even better and is a top pick among not only mass-produced three-row crossovers but also luxury brands.
Base Price: $58,780
As Tested: $60,625
Horsepower: 329
Mileage: 29 mpg city/30 mpg highway/29 mpg combined
The second-generation Hyundai Palisade is a bit larger than the original Palisade. It has a blockier and more upright look including a wide grille and eye-catching stacked LED lighting elements that make the Palisade instantly recognizable.
The 2026 Palisade Hybrid comes in four trims: Blue SEL 7P / 8P, Blue SEL Premium 7P / 8P, Limited, and Calligraphy. (The 7P versions have seating for seven with two second-row captain’s chairs, while the 8P versions have seating for eight with a three-person bench seat in the second row.) Starting prices range from $44,160 to $58,780. Front-wheel drive is standard and all-wheel drive is available on all trims for an additional $2,000.
The 2026 Palisade Hybrid gets a new powertrain that pairs a turbocharged 2.5 liter inline-four-cylinder engine with dual electric motors. Combined output is 329 horsepower (this is 42 more horses than the gas-powered Palisade) and 339 pound-feet of torque. The transmission is a six-speed automatic.
The 2026 Palisade Hybrid can hustle. The two electric motors make for almost instantaneous power off the line, and plenty of smooth power for merging and passing at highway speeds. The six-speed provides smooth and quick shifts, or you can shift yourself with paddles on the steering wheel. The steering is rather numb, as is often the case in a three-row crossover. The regenerative brakes have a normal feel and are responsive. The ride is tuned for comfort and the suspension does a good job in soaking up bumps from rough roads. If there’s one complaint, it’s that the Palisade Hybrid handles like the large vehicle it is, and you’ll sure notice its size when trying to maneuver in tight parking lots. Still, it’s pleasant to drive with a refined ride whether you’re commuting in the city or taking the family on a road trip.
Fuel economy is good for a three-row midsize SUV. EPA ratings for the 2026 Palisade Hybrid Limited and Calligraphy trims, which have larger wheels, are 31 mpg city, 32 mpg highway and 31 mpg combined. That drops to 29 mpg city, 30 mpg highway and 29 mpg combined with all-wheel drive. I got 29 mpg during my week with the Calligraphy Hybrid trim with AWD. The Blue SEL and Blue Sel Premium trims with front-wheel drive get 33 mpg city, 35 mpg highway and 34 mpg combined.
When properly equipped, the Palisade Hybrid can tow up to 4,000 pounds. This is 1,000 pounds less than what the gas-powered Palisade can tow. A factory-installed tow hitch receiver is standard on the Limited and Calligraphy trims, and is a dealer-installed option on the SEL and SEL Premium trims.
The cabin is where the Palisade Hybrid really shines. The interior is well crafted and loaded with features, tech and high-quality materials. The Limited and Calligraphy trims rival what you’ll find in many luxury brands with beautiful upholsteries and stitched panels. The dash looks modern with two 12.3-inch displays housed under a single curved glass panel. Adults in the first two rows enjoy generous leg- and headroom. Even the third row is spacious enough for average-size adults. A nice touch is that all three rows slide forward and back so that passengers can adjust their space as needed, and the second row can slide and tilt forward to make it easier for passengers to get in the third row.
Standard features include remote start, proximity keyless entry, Hyundai Digital Key 2 Premium technology (lets you use your smartphone as your key), push-button start, tri-zone automatic climate control, auto-dimming rearview mirror, H-Tex synthetic leather upholstery, driver’s seat and side-mirror memory settings, eight-way power-adjustable front seats with driver’s four-way lumbar support, heated and ventilated front and second-row seats, heated steering wheel with paddle shifters, 12.3-inch digital instrument cluster, infotainment system with 12.3-inch touchscreen, navigation, over-the-air update capability, satellite radio, wireless Android Auto and Apple CarPlay, Amazon Alexa, two-device Bluetooth connectivity, six high-power USB-C ports (two in each row), wireless device charging, intercom system, rear side-window sunshades, universal garage door opener, LED lighting, ambient lighting, power-folding side mirrors, automatic high-beam headlights, roof rails, and a sunroof.
Available features include a surround-view camera system, head-up display, rear-camera mirror, genuine leather upholstery, Nappa leather seating, Ergo-Motion driver’s seat, front seat leg cushion extensions, front relaxation seat mode, power-adjustable second-row seats with relaxation mode, heated and power-folding third-row seats, power third-row seat access, Bose 14-speaker audio system, UV sterilization light in the center console, rain-sensing windshield wipers, dual-panel sunroof, 20-inch alloy wheels, and tow hitch receiver.
Standard driver assistance technologies include forward automatic emergency braking with car, pedestrian and cyclist detection, lane-centering assist, stop-and-go adaptive cruise control, Hyundai Highway Driving Assist I (semi-autonomous driving system that combines adaptive cruise control and lane-centering assist to manage speed and steering on highways), blind-spot camera, blind-spot collision warning, traffic-sign recognition, speed-limit assist, low-speed reverse automatic braking, driver-attention monitoring, forward-attention monitoring, front, rear and side parking sensors, safe exit assist (prevents the vehicle doors from opening if another vehicle is approaching from behind), and rear-seat alert.
Available driver assistance technologies include forward automatic emergency braking with evasive-steering assist (helps steer the vehicle to avoid obstacles or collisions), active blind-spot collision avoidance, Hyundai Highway Driving Assist II (adds assisted lane change on some roads to standard Highway Driving Assist I), remote park assist, and radar-based rear-seat alert (uses overhead sensors to detect movements, such as breathing, in the back seat after the vehicle is locked.
The Palisade Hybrid comes standard with two 12.3-inch displays – one is a customizable digital instrument panel and the other is the infotainment touchscreen. Both are under one curved glass panel that’s recessed into the dash. It all looks impressive and sleek! Graphics are crisp and menus are logically arranged. Several physical buttons are handy for often-used functions. And climate controls are easy to reach in a pod in the center of the dash.
Cargo space is about average for a three-row crossover. There are 19.1 cubic feet with all three rows in place, 46.3 cubes with the third row folded, and 86.7 cubes with the second and third rows folded. A hands-free power liftgate comes standard on all trims.
The 2026 Palisade Hybrid has Hyundai’s excellent warranty: a 10-year/100,000-mile powertrain and hybrid battery warranty, a 5-year/60,000-mile new vehicle limited warranty, and 7-year/unlimited-mile anti-perforation coverage.
The good:
Attractive looks
Quick acceleration for a midsize SUV
Refined ride
Good fuel economy
Luxurious cabin
Loaded with features and tech
User-friendly infotainment system
Standard wireless Android Auto and Apple CarPlay
The not-so-good:
Drives like a large SUV
Pricing info:
My 2026 Calligraphy AWD tester starts at $58,780. Carpeted floor mats are $245. The destination fee is $1,600, bringing the grand total to $60,625.
Bottom line:
The 2026 Hyundai Palisade Hybrid is terrific and arguably the best version yet of the Palisade. With its refined ride, good fuel economy, lavish interior, and long list of standard features, it stands out as one of the nicest three-row SUVs you can get, even among luxury brands.
