2026 Hyundai Palisade Review | Drive Chicago
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2026 Hyundai Palisade

Hyundai hopes new Palisade brings a touch of luxury to the carpool club.

by: Mark Bilek

The 2026 Hyundai Palisade marks the debut of its second generation, evolving from a well-regarded family hauler into a more premium, tech-savvy crossover. Slightly larger than its predecessor, it remains a midsize three-row wagon with seating for seven or eight, depending on configuration. Hyundai has redesigned the Palisade's exterior with vertical lighting elements and a more squared-off silhouette, giving it a Land Rover-esque presence. Inside, the cabin is inspired by high-end furniture design. Key competitors include the Chevrolet Traverse, Ford Explorer, Honda Pilot, Kia Telluride, Mazda CX-90, Nissan Pathfinder, Subaru Ascent, Toyota Grand Highlander, and Volkswagen Atlas.

The 2026 Palisade offers two powertrains: a 3.5-liter naturally aspirated V6 producing 287 hp and 260 lb-ft of torque returns from last year, and a new hybrid setup combining a 2.5-liter turbocharged four-cylinder with two electric motors for a total of 329 hp and 339 lb-ft of torque. The V6 is paired with an 8-speed automatic transmission, while the hybrid uses a 6-speed automatic. Front-wheel drive is standard, with all-wheel drive optional across most trims. Towing capacity is 5,000 lb for the V6 and 4,000 lb for the hybrid. Trims include SE, SEL, SEL Premium, Calligraphy, and the rugged XRT Pro (V6 only), with the hybrid available on select trims.

Pricing starts around $36,650 for the base SE and climbs to over $60,000 for the fully loaded Calligraphy Hybrid AWD. Standard features include dual 12.3-inch displays, wireless Apple CarPlay/Android Auto, adaptive cruise control, and Hyundai's Digital Key 2.0. Optional features include captain's chairs, a 14-speaker Bose audio system, panoramic sunroof, and fingerprint authentication. Safety tech includes forward collision avoidance, lane keeping assist, blind spot monitoring, and a surround-view monitor. The XRT Pro adds off-road styling, all-terrain tires, and a rear limited-slip differential.

2026 Hyundai Palisade

Engine Performance
Hyundai offers two distinct powertrains in the 2026 Palisade. The standard 3.5-liter naturally aspirated V6 produces 287 horsepower and 260 lb-ft of torque, delivering smooth and predictable performance. While not blisteringly quick, it provides enough grunt for confident merging and highway passing. Acceleration from 0 to 60 mph takes approximately 7.5 seconds, which is competitive for the segment but not class-leading. The 8-speed automatic transmission paired with the V6 is tuned for comfort rather than sportiness, offering seamless shifts during casual driving but occasionally hesitating during aggressive throttle inputs or uphill climbs. It's a solid choice for buyers who prioritize reliability and traditional power delivery.

The new hybrid powertrain is a more compelling option for those seeking both performance and efficiency. It combines a 2.5-liter turbocharged four-cylinder engine with dual electric motors, producing a combined output of 329 horsepower and 339 lb-ft of torque. This setup delivers brisk acceleration, with a 0-60 mph time of just 6.8 seconds. The electric motor's torque fills in gaps during gear changes, making it feel more responsive in stop-and-go traffic and during quick overtakes. The 6-speed automatic transmission used in the hybrid is tuned to maximize efficiency while maintaining a natural driving feel, avoiding the rubber-band sensation common in CVTs. Overall, the hybrid powertrain elevates the Palisade's driving dynamics and positions it as one of the more refined and capable options in the midsize SUV segment.

Fuel Economy
Fuel economy varies significantly between the two powertrains, giving buyers flexibility based on their driving habits. The V6-powered Palisade returns an EPA-estimated 20 mpg in the city and 26 mpg on the highway for front-wheel-drive models. Opting for all-wheel drive drops those figures slightly to 19 mpg city and 24 mpg highway. With an 18.8-gallon fuel tank, the V6 Palisade offers a highway driving range of approximately 450 miles. It runs on regular unleaded gasoline. In real-world testing, the V6 tends to average around 22 mpg combined, with highway cruising yielding slightly better results than stop-and-go urban driving.

The hybrid model is the clear winner in terms of efficiency. Front-wheel-drive versions of the hybrid achieve up to 34 mpg combined in the SEL trim, while the more luxurious Calligraphy trim sees a slightly lower rating of 31 mpg due to added weight and features. All- Despite sharing the same 18.8-gallon tank, the hybrid's superior efficiency stretches its highway range to over 600 miles, making it ideal for long-distance travel. Real-world fuel economy often exceeds EPA estimates, with some drivers reporting up to 41 mpg in mixed driving conditions. Like the gas-only engine, the hybrid also uses regular gasoline, and its regenerative braking system helps recapture energy during deceleration, further boosting efficiency. For buyers focused on fuel savings without sacrificing power, the hybrid Palisade is a standout.

AWD & Off-Road Capability
Hyundai's HTRAC all-wheel-drive system in the 2026 Palisade is designed to provide confident traction across a variety of conditions. It uses active torque vectoring to distribute power between the front and rear axles, enhancing grip on slippery surfaces and improving cornering stability. The system includes selectable drive modes - Normal, Sport, Smart, Snow, and Eco - allowing drivers to tailor the vehicle's behavior to road conditions or personal preference. Snow mode optimizes throttle response and torque distribution for icy roads, while Sport mode sharpens steering and transmission mapping for a more engaging drive.

For those seeking off-road capability, the XRT Pro trim adds meaningful upgrades. It features a raised suspension that increases ground clearance by one inch, 18-inch all-terrain tires for better grip on loose surfaces, and a rear electronic limited-slip differential that improves traction when one wheel loses contact. Red tow hooks and skid plates add both function and rugged styling. While the Palisade isn't built for rock crawling, the XRT Pro makes it a viable option for dirt trails, forest roads, and snowy backcountry routes. It's a smart choice for buyers who want occasional off-road versatility without sacrificing on-road comfort.

Ride Quality
The 2026 Hyundai Palisade delivers a ride quality that leans toward comfort and composure, making it an ideal choice for long-distance travel and daily commuting alike. The MacPherson strut front and multi-link rear suspension setup is tuned to absorb road imperfections with minimal intrusion into the cabin. Over potholes and uneven pavement, the Palisade remains impressively settled, with only the largest bumps transmitting a muted thump. The hybrid model, thanks to its added weight and slightly revised damping, feels even more planted and serene, gliding over rough surfaces with a luxury-like softness. In contrast, the XRT Pro trim, designed for off-road readiness, introduces a firmer ride due to its all-terrain tires and raised suspension. While still comfortable, it transmits more road texture and tire noise into the cabin, especially on broken pavement.

Trim-level differences are noticeable. The base SE and SEL trims offer a well-balanced ride, but lack the acoustic glass and upgraded bushings found in the Calligraphy and SEL Premium models. These higher trims benefit from additional insulation and suspension refinement, resulting in a quieter and smoother experience. The Calligraphy Hybrid, in particular, feels like a different class of vehicle with ride quality rivals that of entry-level luxury crossovers like the Acura MDX or Lexus RX. Whether navigating city streets, cruising on the highway, or tackling winding country roads, the Palisade maintains a composed demeanor that prioritizes passenger comfort without sacrificing control.

Handling
Handling in the 2026 Palisade is tuned for predictability and ease rather than athleticism, which suits its role as a family-oriented midsize crossover. The steering is electrically assisted and offers light effort at low speeds, making parking and urban maneuvering effortless. On the highway, it firms up appropriately, though feedback remains. The Palisade tracks straight and true, with minimal correction needed on long drives. Turn-in is clean, and while body roll is present during aggressive cornering, it's well-controlled and never feels sloppy or top-heavy.

Braking performance is solid across both powertrains. The pedal feel is firm and progressive, allowing for smooth stops without abruptness. The hybrid's regenerative braking system is well-integrated, avoiding the artificial or grabby sensation that plagues some competitors. Under emergency braking, the Palisade remains stable and composed, with minimal nosedive. While it won't thrill driving enthusiasts, the Palisade's handling is confidence-inspiring and well-suited to its mission.

Interior Noise
Hyundai has made significant strides in cabin quietness with the 2026 Palisade, especially in the hybrid and upper trims. Acoustic laminated glass, improved door seals, and additional sound-deadening materials contribute to a hushed environment that isolates passengers from wind, road, and engine noise. At highway speeds, conversations can be held in normal tones, and the audio system performs without needing excessive volume. The hybrid powertrain further enhances quietness by operating in electric mode during low-speed driving, eliminating engine noise altogether.

Compared to its direct competitors, the Palisade stands out. It's quieter than the Ford Explorer and Chevrolet Traverse and matches or exceeds the Honda Pilot and Toyota Grand Highlander in terms of noise suppression. The Mazda CX-90 offers slightly better road noise isolation, but its firmer suspension transmits more impact harshness. Overall, the Palisade's cabin serenity contributes to a premium feel that belies its price point, making it a standout in the segment for buyers who value a peaceful driving experience.

2026 Hyundai Palisade

Interior Design
The interior of the 2026 Palisade reflects Hyundai's push toward upscale design, blending modern aesthetics with high-quality materials. The dashboard features a horizontal layout, anchored by dual 12.3-inch displays that serve as both instrument cluster and infotainment hub. Soft-touch surfaces dominate the upper dash and door panels, while real aluminum trim and ambient lighting add sophistication in higher trims. The center console floats above a storage cubby adding some practical utility.

Seat upholstery ranges from durable cloth in the SE to quilted Nappa leather in the Calligraphy, with perforation patterns inspired by Korean textile art. Hyundai's attention to detail is evident in the stitching, panel fitment, and tactile feedback of buttons and knobs. The overall ambiance is calm and inviting, with a design language that feels more Scandinavian than mainstream, positioning the Palisade as a legitimate alternative to entry-level luxury crossovers.

Interior Functionality
Functionality in the Palisade's cabin is a strong suit, thanks to Hyundai's user-centric approach to ergonomics and interface design. Physical buttons remain for core functions like climate control, audio volume, and drive modes, avoiding the common pitfall of burying everything in touchscreen menus. The infotainment system is intuitive, with crisp graphics and responsive touch inputs. Wireless Apple CarPlay and Android Auto are standard across all trims, and the system supports multi-user profiles, voice commands, and over-the-air updates.

Storage is abundant and well-placed. The floating center console includes a wireless charging pad, dual cupholders, and a hidden tray for small items. Door pockets are deep and shaped to hold bottles securely, while the glovebox and under-console bin offer additional space for documents and electronics. Rear passengers benefit from dedicated climate controls, USB-C ports, and seatback pockets. The Palisade's interior layout makes it easy to live with day-to-day, whether you're juggling kids, gear, or groceries.

Technology & Safety Features
The 2026 Hyundai Palisade is packed with cutting-edge technology and a comprehensive suite of safety features that elevate its appeal well beyond the mainstream. At the heart of the tech experience is Hyundai's dual 12.3-inch display setup with one serving as a digital instrument cluster and the other as a high-resolution infotainment screen. The system supports wireless Apple CarPlay and Android Auto, voice recognition, and over-the-air updates, ensuring the vehicle remains current with new features and bug fixes. Hyundai's Digital Key 2.0 allows owners to unlock and start the vehicle using their smartphone or smartwatch and even share access remotely with family or friends. Higher trims add a head-up display, a 14-speaker Bose premium audio system, and fingerprint authentication for driver profiles and vehicle startup.

Safety is equally robust. Standard across all trims are forward collision avoidance with pedestrian and cyclist detection, lane keeping assist, lane following assist, blind spot monitoring, rear cross-traffic alert, and adaptive cruise control with stop-and-go functionality. The Palisade also includes Highway Driving Assist II, which combines lane centering and adaptive cruise control to offer semi-autonomous driving on highways. Optional features include a surround-view camera system, remote smart parking assist (which allows the vehicle to park itself while the driver stands outside), and a driver attention warning system that monitors fatigue and distraction.

Seating
Seating in the 2026 Palisade is designed with comfort, flexibility, and accessibility in mind. Buyers can choose between seven-passenger configurations with second-row captain's chairs or eight-passenger layouts with a second-row bench seat. The front seats are generously sized and offer multiple adjustments, including lumbar support and ventilation in upper trims. While headroom is great, leg room is just average. Heated seats are standard on most models, and Calligraphy trims add massaging functionality for the driver. The second row provides ample legroom and headroom, even for taller adults, and the captain's chairs offer a first-class experience with armrests and reclining capability.

Access to the third row is facilitated by one-touch folding mechanisms on the second-row seats, allowing passengers to slide them forward with minimal effort. The third row itself is surprisingly spacious for a midsize crossover, accommodating adults on shorter trips and children comfortably for longer journeys. The seatbacks recline slightly, and USB-C ports are available for third-row passengers, a thoughtful touch for tech-savvy families. Getting in and out of the Palisade is easy thanks to wide door openings and a relatively low step-in height, making it accessible for children and older adults alike. Overall, the Palisade's seating layout is one of the most versatile and comfortable in its class.

Cargo Capacity
Cargo capacity in the 2026 Palisade is generous and intelligently designed to support a wide range of use cases. With all three rows in place, the Palisade offers 18.5 cubic feet of cargo space. Folding down the third row expands the space to 45.8 cubic feet, which easily accommodates larger items like camping gear, sports equipment, or multiple suitcases. When both the second and third rows are folded flat, the Palisade opens up to a cavernous 86.4 cubic feet of cargo volume, rivaling some full-size SUVs and making it ideal for moving furniture or hauling bulky items.

Hyundai has also included thoughtful storage solutions throughout the cabin. The rear cargo area features underfloor compartments for storing emergency kits, valuables, or smaller items that need to be kept out of sight. The center console is deep and well-organized, with space for tablets, wallets, and other essentials. Door pockets are wide and shaped to hold water bottles securely, and the glovebox is large enough for documents and accessories. USB-C ports are available in all three rows, ensuring that every passenger can stay charged, while upper trims add a 115V AC power outlet in the cargo area - perfect for tailgating or powering small appliances.

2026 Hyundai Palisade

Bottom Line
The 2026 Hyundai Palisade stands out in the crowded midsize crossover segment by offering a rare combination of comfort, technology, and efficiency. Its new hybrid powertrain delivers strong performance and excellent fuel economy, while the interior rivals luxury brands in design and refinement. The ride quality is plush, the cabin is whisper-quiet, and the tech suite is both comprehensive and intuitive. Safety features are abundant and well-integrated, giving families peace of mind. The XRT Pro trim adds off-road capability without compromising daily drivability, and the Calligraphy Hybrid pushes the Palisade into near-luxury territory. Weak points are few but worth noting: the V6 powertrain feels dated compared to the hybrid, and the transmission can be slow to respond under load. Still, the Palisade's strengths far outweigh its shortcomings, making it a top contender for buyers seeking a well-rounded three-row family hauler.

For most buyers, the SEL Premium Hybrid AWD trim offers the best balance of features, performance, and value. Priced around $50,000, it includes upscale amenities like ventilated seats, upgraded audio, and advanced safety tech, while benefiting from the hybrid's superior fuel economy and quieter ride. Compared to similarly equipped rivals like the Toyota Grand Highlander, Mazda CX-90, and Honda Pilot Elite, the Palisade offers more power, better interior materials, and a more refined driving experience often at a lower price. Hyundai's generous warranty and reputation for reliability further enhance its appeal. Whether you're hauling kids, commuting daily, or planning cross-country road trips, the Palisade delivers a compelling package.

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Mark Bilek

Mark Bilek is the President of Auto Sales, Inc. and the General Manager of DriveChicago.com. Previously, he served as Senior Director of Communications and Technology for the Chicago Auto Trade Association. Mark has been reviewing vehicles for more than two decades. Prior to working at the CATA, he was associate publisher at Consumer Guide, where he oversaw publication of Consumer Guide Car & Truck Test, Consumer Guide's Used Car Book, and ConsumerGuide.com. He was also responsible for publication of "Collectible Automobile" and various hardcover automotive titles. In 2001 and 2002 he served as president of a Midwest Automotive Media Association. Mark has appeared on NBC TV, ABC TV, Fox News, WGN and MotorTrend TV as an automotive consultant. He currently co-hosts the Drive Chicago radio show on WLS 890 AM and was a regular guest on WGN Radio's Steve & Johnnie show.

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