2026 Hyundai Palisade Hybrid

The 2026 Hyundai Palisade Hybrid is part of the second-generation for this vehicle, and it marks the first time this three-row SUV gets an electrified powertrain. We've seen hybrids from Hyundai Motor America since the 2011 model year, and in fact, the Tucson, Elantra, Santa Fe and Sonata have all had hybrid options. So, the big question is: Was it worth the wait? 

In short: Yes. 

Let's dig into this new powertrain and why it's so good. 

2026 Hyundai Palisade Hybrid system 

Hyundai is calling the hybrid powertrain in the new Palisade a next-generation system. It is powered by a 2.5-liter, inline-4 turbocharged engine and paired with two electric motors. It has a primary drive motor that is integrated into the transmission for propulsion and then a secondary motor that starts the engine and regenerates the battery. Previously, Hyundai has only utilized a one-motor system. 

The end result is better efficiency as well as more power. 

Combined output for the hybrid powertrain is 329 horsepower and 339 pound-feet of torque. This is a lot more power than we see from the 3.5-liter V-6 in the gas-only model that delivers 287 horsepower. 

In addition to more power, combined fuel economy is estimated to be more than 30 mpg. Though our brief day-long drive is hardly a true example of actual fuel economy, I can say we were averaging 31.6 mpg. So, our initial test, at least, shows this should be fairly accurate. 

But is it really that smooth? 

One of the first things I noticed when I got behind the wheel was the smooth delivery of power-both as we came out of a stop light and when we were merging on the highway. This isn't going to be throw-you-back-in-the-seat fast. It won't make year stomach do flip flops. But it is nice smooth power that gets the job done without lag. 

I also didn't notice a clunky transition between hybrid and gas operation. 

I've always thought the Hyundai hybrids were fine, but this powertrain definitely helps Hyundai level up, and I'd put this next-gen system on par with Honda and Toyota hybrids. 

More expensive, but get money back in 2 years? 

As you would expect, the pricing for the hybrid is more. The base price of the regular Palisade is $39,435, excluding destination, and you'll need to pay at least $44,160 to get into a hybrid. However, it's worth noting the base trim for the internal-combustion engine (ICE) vehicle is the SE, and the base trim for the Hybrid is the SEL. 

As execs pointed out during the Palisade Hybrid preview, the price premium is actually much less when you compare comparably equipped models. Melvyn Bautista, the product planning manager for the Palisade Hybrid, specifically stated there is a $2,220 price difference when you compare apples to apples in terms of trim and equipment from ICE to Hybrid. However, when you look at the sticker sheet, fuel costs for the hybrid are about $2,000 less. That means, in theory, you should make your money back in about two years. 

Pricing and Trim Levels 

Pricing for hybrid trim levels, without the $1,600 destination fees, is: 

• SEL: $44,160
• SEL Premium: $47,520
• Limited: $51,990 
• Calligraphy: $56,780 

These are front-wheel-drive models. All-wheel drive will add $2,000. 

ICE vs Hybrid differences 

In terms of looks, there really aren't many visible differences. You'll see a discreet hybrid badge on the back of the HEV models, but that's it in terms of design differences. 

But outside of the powertrain, there are two big things you'll see on the hybrid that aren't on the gas versions. The first is "Stay Mode," which will allow you to stay in park in EV mode for 30 to 40 minutes as long as your battery is charged up to 80%. Along with that, you'll see available relax and recline seats in the first and second rows. We've seen these in Hyundai EVs, but this is the first time we're seeing it in hybrid model. 

Design 

Though the design, especially the headlight treatment, can be considered polarizing, we like the overall styling of the 2026 Hyundai Palisade Hybrid-that includes both the interior and exterior. We appreciate the minimalist dash and center stack, but we fully appreciate the buttons and dials for frequently touched items-like the HVAC and audio controls. 

We also appreciate the tech you can get on the Palisade. From the standard wireless Apple CarPlay and Android Auto to the available blind view monitor that shows your blind spots in the behind-the-wheel gauges, there's a lot of intuitive and easy to use high-tech features. 

Since we were in the Calligraphy trim, we only had access to the best of the best, but the interior materials and accents on that model felt and looked very high end. The suede headliner was particularly bougie, and I couldn't help thinking I'd want that material as something I would put on my clothing. 

Finally, the 3rd-row on the top trims is really well done. With heated power slide and recline seats, you can truly adjust the comfort level for those passengers. But outside of that, we liked the overall comfort of the seats, and the large rear windows keep passengers from feeling claustrophobic. 

Needs some work 

There were only a few things we didn't like. First up, if you're going to keep your phone in the wireless charger for more than a half hour, it may overheat. We tried it with our case on and off, and it had the same result: a message stating that charging had stopped due to our phone overheating. Next, we think the bottle holders on the door a bit awkward. They're too narrow to hold a 17-ounch Yeti-brand container, so if you have coffee and water bottles for both front-seat passengers, you'll be overloaded with beverages. 

Finally, and this only applies to petite drivers, with the relax and recline seats, there's a little extra material on the front of the driver's seat. This means that it pushes your knees a little closer to the underbelly of the dash. I found myself hitting my knees when entering the vehicle and when shifting between gas and brake pedals. 

Our take 

The 2026 Hyundai Palisade Hybrid is an excellent electrified model. It has the right amount of power and plenty of efficiency. Getting 30+ mpg in a 3-row vehicle is nothing to sneeze at. Considering the amenities you get for the price tag (all-in at less than $60,000 with heated third-row seats!), we consider this a no-brainer. It drives nicely and has most of the features you could possibly want on a family vehicle. 

The 2026 Hyundai Palisade is on sale now.