The new, second-generation 2026 Hyundai Palisade is out, and its main highlight is, well, everything. Completely reimagined from the ground up, this three-row family SUV will continue Hyundai’s impressive sales performance in the three-row large SUV segment.
Yes, its new, optional hybrid drivetrain is worth the talk, but everything about the new 2026 Hyundai Palisade has been redesigned. As such, using the word “all-new” finally made actual sense. That’s because other automakers would abuse the word “all-new”, but the drivetrain and/or the platform (I’m looking at you, Toyota) is still the same as the previous model. But I digress.
The 2026 Hyundai Palisade Hybrid offers so much more than efficiency. It offers a holistic approach to refinement and comfort that brings into question whether it’s even worth stepping up into a Genesis. Here’s what it’s all about.
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A Hybrid For Handling And Comfort
Let’s first talk about the hybrid system itself, which is a new generation hybrid powertrain for Hyundai Motor Group (HMG). This is also going to be the same hybrid system that the next-generation 2026 Kia Telluride will get, so take a gander here at what makes this hybrid system good.
Electrified Potency
The new generation hybrid system retains HMG’s parallel layout versus Japan’s preference for a series-parallel system. Combining a new 2.5-liter turbo four-cylinder with an over-expansion cycle as one of its fuel efficiency techniques, along with two electric motors: the motor generator for engine startup, battery charging, and regenerative braking, while the traction motor is what provides electric vehicle propulsion. So far, so conventional. The Palisade Hybrid is also the more powerful version versus the 3.5-liter V-6. It offers 329 horsepower and 339 pound-feet of torque, which is sent through a six-speed automatic versus the various e-CVT variations that the Japanese brands prefer. As a result, this setup gives the Palisade a linear and very conventional driving feel.
Those electric motors can also do plenty of clever tricks—all of which are dedicated to improving the Palisade Hybrid’s handling. The new hybrid system is Hyundai’s first implementation of electronic all-wheel drive (AWD). Opt for AWD, and a third electric motor is added at the rear axle, and this features Electrification-Vehicle Motion Control (e-VMC 2.0), e-Handling 2.0, Electrification-Evasive Handling Assist (e-EHA 2.0), and e-Ride 2.0. Without overcomplicating these acronyms, what they simply mean is that the new hybrid system possesses electronic torque vectoring capabilities on the left and right sides of the vehicle, as well as the ability to vary power between the front and rear axles—all for the purpose of achieving smoother handling and ride control.
Electrified Ingenuity
HMG has been making award-winning electric vehicles (EVs). The Ioniq 5 and EV6 both redefined vehicle ownership because their E-GMP EV-dedicated platform allowed these two cars to have clever interior packaging. Furthermore, HMG utilized its EVs’ large batteries for features beyond driving. For instance, they popularized vehicle-to-load (V2L), which enables an EV to become an external power source when you use the car for camping, or whenever there’s a power outage at your house.
Now, that same level of ingenuity is being implemented into the Palisade Hybrid, though, of course, with a tiny 1.65 kWh lithium-ion battery, V2L won’t last that long in this vehicle. Still, if you’re out camping and you want to run an electrical appliance or something, at least you have that option in the Palisade Hybrid. New for any HMG vehicle, however, is the so-called “Stay Mode”. With this mode, the Palisade Hybrid can directly use its battery to power the vehicle when you’re idling. That’s because with other hybrids, when you’re in “Accessory” mode, it uses power from the 12-volt auxiliary battery, which, admittedly, was something that always baffled me.
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A Genesis-Like Vehicle Experience
While the 2026 Hyundai Palisade Hybrid’s drivetrain is already a highlight in itself, the overall design of this three-row SUV is just as impressive. As I said, everything in the new Palisade Hybrid is worth talking about, because this vehicle also offers a Genesis-like vehicle experience.
Distinct Design
Hyundai has pushed the boundaries of design in recent decades. Starting with their Fluidic Sculpture era, Hyundais have begun to look distinct, and that continues in their present design language with the Palisade. At the front, the wide grille is flanked by vertically stacked LED headlights with satin lenses for the LED daytime running lights. When the vehicle is turned off, the daytime running lights cleverly blend with the satin silver trims. Four variants are available: SEL, SEL Premium, Limited, and Calligraphy. Even if you only have a budget for the SEL, you’ll already love the way this three-row SUV looks, though its 18-inch wheels do look small relative to its size.
Moving to the sides of the vehicle, blacked-out pillars give a floating roof effect—one that’s complemented by satin silver window trim running on top of the windows. This window trim element also kinks down towards the rear end, wherein you’ll see LED taillights that mimic the design of the LED daytime running lights. For the poshest look, the Calligraphy Hybrid gets 21-inch wheels, body-colored cladding, and an increased amount of satin silver exterior trims.
Value And Luxury In One
Of course, what matters even more in a three-row family SUV is its interior, and indeed, you’ll love the lounge-like vibes of the 2026 Hyundai Palisade Hybrid. The dash is very stylish with a deeply sculpted design. Upping the premium feel is the generous use of soft-touch materials and leatherette surfaces. Two 12.3-inch screens running the connected car Navigation Cockpit (ccNC) operating system fill the void inside the dash. At the same time, a plethora of comfort features are offered as standard, such as heated and ventilated power-adjustable front seats, a conventional sunroof, H-Tex leatherette upholstery, built-in Alexa voice assistant, acoustic-laminated front glass, wireless charging, a Wi-Fi hotspot, three-zone automatic climate control, 64-color ambient LED lighting, a hands-free powered tailgate, and second-row captain’s chairs, just to name a few.
Want more practicality? A bench seat is available as a no-cost option for SEL and SEL Premium. Opting for the Limited or Calligraphy adds features like genuine wood interior trims, a panoramic sunroof, power adjustment for the second-row captain’s chairs, a windshield-projected head-up display, and a Bose sound system. Finally, the range-topping Calligraphy trim ups the luxury quotient even further with its Nappa Leather upholstery surrounding the seats, doors, and the dash. Maximum indulgence is also provided by this variant’s power-adjustable second-row captain’s chairs with a relaxation mode, which the front seats also benefit from.
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How It Drives In The Real World
With all of this talk about its design and cleverly engineered next-generation hybrid system, how does the 2026 Hyundai Palisade Hybrid perform in the real world? Spoiler alert: it’s one of the best three-row SUVs you can buy today.
Effortlessly Delicate
We’ve mentioned a lot of letters from the alphabet soup to form the various acronyms of Hyundai’s next-generation hybrid system, but all of that thankfully translates to a three-row SUV that’s both effortless and smooth. Credit the six-speed automatic, which HMG has imbued with a feature called Active Shift Control (ASC). Through the first electric motor, aka motor generator, that is embedded in the transmission, shifts are smoothened out, thus delivering a buttery smooth, EV-like acceleration. With 329 horsepower on tap, the Palisade Hybrid is powerful, not in a neck-snapping way, but one that’s focused on delicacy and smoothness.
And indeed, even in the handling department, it’s all about smoothness and security. There’s plenty of grip with the electronic AWD Calligraphy that we drove, yet with how the entire hybrid system is tuned to deliver secure but smooth handling, you won’t feel any motion sickness even when the driver is pushing the Palisade Hybrid hard through a set of sweeping corners. Couple that with supreme levels of refinement and great suspension tuning, and the Palisade Hybrid is one of the best long-distance companions at its price point.
Whilst Being Frugal
And yet with 329 horsepower on tap, the Palisade Hybrid is still remarkably efficient. The Palisade Hybrid in FWD SEL and FWD SEL Premium has a combined efficiency of 34 MPG, while the Limited and Calligraphy in FWD forms can do 31 MPG, due to their larger wheels. Meanwhile, opting for AWD brings it down to a still impressive 29 MPG for all variants. This makes the Palisade Hybrid one of the most efficient three-row SUVs, and also one with a bladder-bursting driving range of 619 miles.
|
Engine |
2.5-liter turbo four-cylinder hybrid |
|
Horsepower |
329 hp |
|
Torque |
339 lb-ft |
|
Transmission |
6-speed A/T |
|
Layout |
FWD / AWD |
|
Fuel Economy (Combined) |
34 MPG (FWD SEL, FWD SEL Premium) 31 MPG (FWD Limited, FWD Calligraphy) 29 MPG (All AWD models) |
For reference, the turbo parallel hybrid Grand Highlander Hybrid Max can do 27 MPG combined. To match the Palisade’s efficiency, the model you’ll have to opt for with the Grand Highlander is the 245-horsepower, 2.5-liter series-parallel hybrid with an e-CVT, which does 36 MPG combined in FWD and 34 MPG with AWD. Go this route in the Grand Highlander, however, and you’ll end up with a vehicle whose power feels adequate at best, and tepid at worst.