2026 Hyundai Palisade Review | Drive Chicago
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2026 Hyundai Palisade

Award winning family crossover gets even better in its second generation

by: Jim OBrill

 

Test Vehicle: 2026 Hyundai Palisade Calligraphy

Exterior Color: Galaxy Maroon

Interior Color: Brown Leather

Notable Options: Carpeted Floor Mats ($245)

Price as tested: $57,800 (with destination charge)

 

Pros: Spacious Interior, Comfortable Ride, Premium Interior Quality, Standard Features, New Hybrid 

Cons: Average Handling, Fuel Economy (V6), Top Trim Pricing

 

The Palisade joined the Hyundai lineup in 2020 with much praise as a three-row midsize crossover. The Palisade and platform partner, the Kia Telluride, have since won over consumers and the industry with spacious interiors, impressive technology, trend-setting designs, and overall value. It has set a benchmark for what is expected in a three-row crossover. For 2026, the Palisade enters its second generation with a complete overhaul inside and out. It gets a fresh new exterior design, it grows in size with a longer wheelbase, offers a new hybrid powertrain, more luxury amenities inside, new technology, a new XRT trim, and more. It’s off to a great start having just been awarded the Midwest Automotive Media Association’s Favorite Family Vehicle and Favorite Overall Vehicle of the Year!

 

For 2026 the Palisade is available in seven different trim levels known as the SE, SEL, SEL Convenience, SEL Premium, XRT Pro, Limited, and Calligraphy.  All models come with a 3.5L V6 engine that delivers 287 horsepower and is available with front or all-wheel drive. It can tow up to 5,000 pounds when properly equipped. Also available and new for 2026 is a hybrid option that pairs a 2.5L turbocharged inline-4 cylinder with an electric motor for a combined output of 329 horsepower. Hybrids are also available in either FWD or AWD and can tow up to 4,000 pounds. 

 

It seats seven or eight passengers depending on the seating configuration. Standard features include LED lights, blind-spot collision-avoidance assist, wireless smartphone integration, rear view monitor with parking guidance, and more. Prices start at $39,435 for a FWD SE  (up $2,235 from 2025) and climb into the $60,380  range for a Calligraphy Hybrid AWD model. Competition includes the Chevrolet Traverse, Ford Explorer, Honda Pilot, Kia Telluride, Nissan Pathfinder, Mazda CX-90, Subaru Ascent, Toyota Grand Highlander, and Volkswagen Atlas. I spent a week in an AWD Calligraphy model and here's what stands out...

 

Premium Features:

The Palisade offers a lot of value for the price with a list of available premium features that fit more in line with luxury-level crossovers, especially with the Calligraphy. Starting outside, an LED lighting system includes premium lighting in front and back with a standout daytime running light signature. Available 21" wheels complement the exterior design with a two-tone machined finish. Inside top-level materials are available including quilted leather, microfiber-suede headliner, perforated leather steering wheel and more. Technology is current with a digital instrument cluster, mobile device integration, high resolution color touchscreen, premium audio and more. Beyond these modern amenities is a long list of available driver assist features thus making the Palisade a well-rounded vehicle in the segment that's built well and priced well.

 

Exterior Styling:

The 2026 Palisade adopts a bolder, more upright design compared with the smoother look of the previous generation. Up front you’ll find a large parametric grille with integrated LED lighting and a light bar that stretches across the top. The LED lighting is bold with a stacked five bar lighting signature on the side and two small rectangles for the actual headlights. The grill itself looks like a high-end razor blade on most models. Opt for the XRT pro and the front fascia has a different look. 

 

The side profile showcases more boxy proportions and an upright stance. It has a longer wheelbase with the wheels being pushed closer to the edges. There are sharper body lines and varied sizes of wheels depending on the trim that get as big as 21 inches.  It comes with silver rocker panels, power-folding mirrors, and roof rails. Around back are new vertical LED taillights with the same stacked lighting elements as in the front that are very recognizable.  P-A-L-I-S-A-D-E is spelled out across the hatch, there’s a hidden rear wiper, integrated roof spoiler, and a wide tailgate. The overall theme is more upscale and modern. 

 

XRT Pro Model:

Hyundai jumped on the 'off-road' bandwagon and offers a rugged XRT Pro model that complements the Tucson and Santa Fe XRT line-up. The Palisade XRT Pro has its own unique look with a differentiated front and rear. Up front is a different grille and front fascia with visible red recovery hooks. Around back is a different rear bumper and blacked out center section of the tailgate. It rides on all-terrain tires wrapped around dark-finished 18” wheels. 

 

Mechanically, it gets some real off-road hardware which includes electronic rear limited-slip differential for improved traction, HTRAC all-wheel drive standard, 8.4 inches of ground clearance (about 1 inch higher than other trims), and Improved approach, departure, and breakover angles. These upgrades allow the XRT Pro to handle dirt roads, snow, sand, and light trails much better than a standard Palisade. It also gets added terrain modes for mud, sand, and snow which will adjust throttle response, traction control and AWD behavior to maximize grip on loose surfaces. 

 

Other added features include front and rear recovery hooks for getting unstuck, tow mode for hauling trailers, factory-installed tow hitch, and downhill brake control for steep descents.

It also maintains the Palisade’s 5,000-lb towing capacity, making it suitable for boats, campers, or trailers.  Inside you’ll find H-Tex leatherette seating, technology displays for pitch & roll indicators, compass and elevation readouts, and a forward ground view camera for trail visibility. It’s a much more trail-ready variant than previous XRT models that were more of an appearance package. 

 

Powertrain:

All models come with a 3.5L V6 engine that delivers 287 horsepower and is available with front or all-wheel drive. It can tow up to 5,000 pounds when properly equipped. Also available and new for 2026 is a hybrid option that pairs a 2.5L turbocharged inline-4 cylinder with an electric motor for a combined output of 329 horsepower. Hybrids are also available in either FWD or AWD and can tow up to 4,000 pounds. 

 

I spent time in the V6 which is pretty comparable to the previous generation. It's paired with an 8-speed automatic that is refined and smoothly navigates through the gears. It offers reasonable acceleration from a stop and enough extra power to get cruising on the highway. It will get from 0-60 MPH in about 6.6 seconds which is rather impressive for such a large SUV. There are six different drive modes that can be selected through a dial on the center console that include Eco, Sport and My Drive. AWD models will add drive modes for Snow, Mud, and Sand. 

 

The Palisade is tuned primarily for comfort and stability. Handling is composed at all speeds making it an easy crossover to drive. Steering is responsive and direct. Even with its larger size, body lean is minimal in quick turns. Stability is good as it absorbs road imperfections with ease. It comes with an independent suspension (struts front, multi-link rear) which gives it a smooth ride over rough pavement. There is also low interior noise thanks to acoustic glass and extra insulation. The AWD system is automatic and will kick in when needed to keep the Palisade grounded, but it does not have a low range for more adventurous off-roading. AWD models also add a new Tow Mode which will adjust the powertrain profile for maximum efficiency. Overall, the Palisade delivers a refined, relaxed driving experience, similar to larger premium SUVs.

 

Fuel-Economy:

When it arrived with a full 19-gallon tank, it offered around 450 miles of range. EPA estimates are 18/24/20 MPG city/highway/combined and after a week of suburban driving in cold weather I averaged 20 MPG. Hybrid models will improve fuel efficiency by roughly 40-60%. The most efficient FWD trims will get 33/35/34 MPG city/highway/combined. This boosts the driving range to almost 580 miles on FWD models or 530 miles on AWD. 

 

Interior:

Much like the outside, the inside of the Palisade also gets a complete overhaul and is one of the vehicle's biggest strengths. It pushes very close to luxury-SUV territory while still being priced like a mainstream family vehicle. The updated aesthetic utilizes soft-touch surfaces and high-end trim throughout, especially in the Calligraphy model I was driving.  Drivers face a dual 12.3” panoramic display for the digital cluster and infotainment system. The clean, “calm” dashboard design is simple and elegant. The gear selector has been moved to be a column shifter similar to the IONIQ 5 which will take some getting used to. Gears are selected by twisting the end of the stalk. The engine start/stop button is also awkwardly tickled behind the steering wheel on the gear selector stalk.  It adds ambient lighting, a large center console with smart storage, dual-pane panoramic sunroof, and high-quality color schemes to tie it all together. 

 

For the driver, an available full-display digital center rearview mirror uses a rearview camera to allow the driver to clearly see behind the Palisade without the obstructions of passengers or cargo. Slim horizontal air vents add a sense of spaciousness and premium ambience. 

 

Interior Space:

The overall space inside has grown and continues to offer a relaxing vibe for passengers. Up front, both passengers have plenty of head and legroom. An open center console creates space underneath for storage, thus keeping the cabin area clutter free. The center console is simplified to offer a wireless charging tray, cup holders, and USB-C outlets along with central opening storage. 

 

The second row comes with either a bench seat (8-passenger) or captain's chairs (7-passenger).  For models with captain's chairs, access to the third row is easy in between the seats or by folding the seats at the touch of a button which slides it forward. The third row is by far the most spacious in the mid-size class with the Atlas being its closest competitor. However, the Atlas only seats two in the third row while the Palisade seats three across comfortably in the back row. For an added open concept feel, the Palisade offers both an opening sunroof up front and a second fixed-glass skylight over the back seats.

 

Seat Comfort:

Palisade offers an innovative Ergo driver's seat designed to provide comfort and help reduce fatigue during long drives. An automated lumbar support system in the Calligraphy models kicks in a pseudo-massage after 30 minutes of driving to relieve back tension. Palisade's third-row seating offers heating for its passengers and the second row of seats now offers wing-out headrests and seat ventilation for extra comfort.

 

Cloth upholstery is standard on the SE and SEL while a leather trimmed option is also available on the SEL. Limited and Calligraphy models come standard with premium Nappa leather that is soft to the touch and the quilted stitching creates an elegant look. These seats are comfortable and supportive for extended drives. All seats are adjustable and heated seats are standard on SEL trims and up. Other available features include ventilated seats, integrated memory system, heated/ventilated second row seats, leg cushion extension, and lumbar support. Also available are power-folding third-row seats at the touch of a button. Calligraphy models also enhance the luxury vibe with a suede roof liner that looks and feels premium.

 

Cargo Space:

Behind the third row is now 19.1 cu.ft. of cargo space, up from 18.  The third-row seats will fold flat to offer 46.3 cu.ft. behind the second row and with both rows flat, there is a total of 86.7 cu.ft. behind the front two seats. Overall capacity is improved from the previous generations and better than most competitors. Higher trim models offer power folding seats in the second and third row at the touch of a button. As a bonus, there is underfloor storage behind the third row and a hands-free power liftgate.

 

Technology:

Behind the newly designed steering wheel are dual 12.3-inch curved display featuring a  fully digital instrument panel that features a multi-information display at the center of two digital dials. The blind spot monitor system will activate cameras when the turn-signals are activated which projects images into the digital cluster for optimal viewing. Other driver assist features can also be controlled here such as smart cruise control and lane follow assist.

 

Slide over to the right for the second screen in the curved display for another standard 12.3" color touchscreen that controls infotainment. Hyundai's system offers wireless smartphone connection for Apple CarPlay and Android Auto. The new dash layout adds a pod of controls and air vents below the screen that includes a row of buttons with quick access menu buttons and physical dials for audio and tuning. Below that is another pod of controls for climate functionality. A 14-speaker Bose premium audio system with surround sound is also available. Overall, the system is intuitive except for a few items such as the ambient lighting settings that require you to tab through a few different screens.

 

Wireless charging capability has been upgraded for faster device charging. Over-the-air updates allow the Palisade to update itself like a smartphone which can add features over time and fix any glitches. USB-C outlets are in all the rows for faster device charging throughout the interior, providing extra convenience for all passengers. Other unique features include Driver Talk which will amplify the front passengers' voice into the speakers for rear seat passengers and Rear Seat Quiet Mode which will subdue the speakers in the back at the touch of a button should you have sleeping children and want to create a quieter environment.

 

Digital Key:

The 2026 Palisade supports the latest version of Hyundai Digital Key. Digital Key 2.o Premium allows owners to leave their car key at home and use an iPhone, Apple Watch, or Samsung Galaxy smartphone to lock, unlock, and start their vehicle. After the car key has been added to Apple Wallet or Samsung Pass, users can simply hold the supported device near the door handle to lock or unlock the car. Touching an Apple Watch near or placing the phone in the wireless charger and then pressing the start button allows the driver to start the Palisade's engine. Apple Wallet or Samsung Pass also allows secure sharing of keys with family and friends.

 

Safety Features:

One of the reasons that makes the Palisade such a value is its long list of standard safety features, and it continues to grow each year. All models come equipped with Hyundai Smartsense safety features which includes many innovative technologies, including Forward Collision-Avoidance Assist, Blind-Spot Collision-Avoidance Assist, Safe Exit Assist, Driver Attention Warning, High Beam Assist, Navigation-based Smart Cruise Control, Lane Following Assist, Highway Driving Assist, Rear Cross-Traffic Collision-Avoidance Assist, Reverse Parking Collision-Avoidance Assist and Remote Smart Parking Assist. The adaptive cruise and speed control works very well and adjusts for curves, speed zones, and traffic very smoothly making longer drives much easier. All these systems work well and should offer buyers peace of mind that they are already included in the price of the vehicle.

 

Remote Parking Assist:

Often referred to as smart park, it is a neat trick that is quite easy to use. While standing near the vehicle, you can start it up via the remote and once activated, you can control the car at the touch of a button by moving it forward or back as if it was a remote-controlled car without actually being in the driver seat. The feature is very user friendly and safe. Releasing the button immediately stops the vehicle.

 

Final Statement 

The Palisade continues to set the bar high for the midsize crossover segment and they hit the mark with this second generation keeping the magic that made it so special the first time. It has received praise from the media and owners alike since its arrival and the 2026 model is on track to do the same starting with its announcement as Midwest Automotive Media Association's Favorite Vehicle of the Year at the 2026 Chicago Auto Show. The 2026 overhaul keeps the Palisade current and competitive with new models that have joined the segment in recent years and the addition of a hybrid powertrain is sure to please a lot of buyers.  The Palisade remains a leader in the segment with even more value and options than before.

headshot
Jim OBrill

Jim is Senior Director of Marketing for the Chicago Automobile Trade Association and Chicago Auto Show and a co-host of Drive Chicago Radio on WLS 890 AM Chicago. He also serves as the President of the Midwest Automotive Media Association (MAMA) and creates digital content for Drive Chicago, The Chicago Auto Show, and MAMA. His passion for cars started young and he’s often referred to as the ‘car-guy’ among family and friends. Early in his career he worked at several car dealerships in various areas of the business. Jim has attended track school and driven vehicles on multiple circuits such as Road America and Gingerman Raceway. Jim also collects Hot Wheels and has been invited to be a guest judge for the Hot Wheels Legends Tour. He enjoys the trails and taking trucks like his 4Runner off road. He has a special appreciation for older cars and can often be found spending free time at cruise nights (where has also guest judged vehicles) or home washing one his four vehicles. Follow Jim on Instagram at @jpcars22 for new vehicle content or @forgotten_survivors.312 for shots of older car content.

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