First Drive: 2026 Hyundai Palisade Hybrid – Combining Power, Efficiency, Luxury in One Package

The Hyundai Palisade made an auspicious debut six years ago, taking things to a new level of roominess, style and features for the Korean carmaker. A second-generation version of the crossover takes things to new levels – especially with the launch of a first-ever Hyundai Palisade Hybrid. Headlight.News had a chance to check out the 3-row gas-electric package and here’s our review.

Hyundai’s flagship Palisade SUV gets a makeover for 2026 and the three-row SUV not only grows bigger but adds an array of new features, including an upgraded infotainment system and more of the advanced driver assistance systems family buyers appreciate.

Add to the update a new Palisade XRT Pro package that boosts the off-road capabilities of the crossover – or, for most buyers, ensures it gets an even better grip on snow and ice-covered roadways.

For Hyundai, the active word for the 2026 Palisade is “more,” and the list also includes a first-ever hybrid package that is now rolling into U.S. showrooms, a few months after the rest of the trims. What’s impressive about the gas-electric model is the fact that it delivers not only better fuel economy – an EPA-estimated 34 mpg combined – but also boosts the big rig’s performance. To test that claim, we flew down to Texas Hill Country for a day’s drive.

What’s new

While it’s not an entirely ground-up new vehicle, Hyundai has made plenty of changes to the 2026 Palisade. To start with, the 2026 Hyundai Palisade grows bigger in virtually every dimension, adding 2.5 inches in length and 2.7 inches to its wheelbase. That translates into a roomier cabin, much of it going into the rear of passenger compartment for third-row passengers and cargo.

Like the rest of the 2026 Palisade line-up, the Hybrid picks up on some of the styling cues seen on other recent Hyundai introductions, notably the H-shaped headlamps. But the automaker has steered clear of developing a single design language offered across its line-up in small, medium and large packages.

Even base trims get a variety of new features, though the Calligraphy package I drove gets the sort of luxury touches – like massaging second-row seats – you might normally expect from the Korean company’s top-line Genesis brand.

The big news, at least when it comes to this review, however, is the availability of a hybrid engine option that delivers the sort of fuel economy you might otherwise expect from Hyundai’s smallest and cheapest crossover, the Venue.

A brawny hybrid

While it was slow to enter the hybrid market, Hyundai has rapidly been racing to catch up to competitors like Toyota – as well as Kia. (That sibling Korean brand just launched a hybrid version of its little Seltos and we can expect to see a similar option soon show up on Venue.)

At launch, the 2026 Hyundai Palisade offered a 3.5-liter naturally aspirated V-6 coupled to an 8-speed automatic transmission. Making 287 hp and 260 lb-ft of torque, it will handle up to 5,000 pounds towing and is available in both two-wheel- and all-wheel-drive configurations.

The star of the show, at least as far as I’m concerned, is that new hybrid drivetrain. It pairs a 2.5-liter turbocharged inline-four with two electric motors which draw current from a 1.65-kWh lithium-ion battery pack. Power goes through a six-speed automatic. The combined output: 329 hp and 339 lb-ft, though towing capacity drops to 4,000 pounds.

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Driving Impressions

The EPA gives the hybrid a fuel economy rating of as much as 34 mpg – a full 3 mpg more than the comparatively tiny Venue. That said, the number drops to 29 mpg with the fully loaded, all-wheel-drive Calligraphy package. My test vehicle came in surprisingly close to that number, despite pushing it hard during a long drive through the rugged countryside leading out from the Texas capitol of Austin.

Palisade isn’t quite full-size by official industry classification, but it’s big enough to fit up to eight, depending upon the seating configuration. In Calligraphy trim, it weighs in at a hefty 6,327 pounds. Yet the torquey motor drive portion of the powertrain easily makes you forget that fact, delivering a surprising launch feel that doesn’t fade away when you merge onto one of the Lone Star State’s fast-moving freeways.

As you’d expect there are multiple drive modes, including Sport and Comfort. My AWD package added Sand, Snow and Mud settings which, among other things, help manage torque distribution for maximum grip in adverse conditions. I also liked the fact that the hybrid could be set to provide a continuing flow of current, much like a battery backup, when parked, the engine turned off. That can be useful when out camping or tailgating.

Design

The new Palisade adopts a more boxy and imposing presence, with large, forward-raked D-pillars and more upright body panels and glass. Surprisingly, despite its large nose, front fascia and horizontal hood, the SUV is more aerodynamic than the outgoing model with a drag coefficient of 0.31. That, Hyundai claims, contributes to both better fuel economy and lower wind noise. Meanwhile, by pushing the wheels further out to the corners, Hyundai was able to deliver more interior space.

The roomier cabin maintains its seating for eight layout, with optional captain’s chairs for the second row. New “Relaxation chairs,” meant to reduce fatigue are standard for the first two rows. And the second row now features a tilt-and-slide function for easy third-row access.  That back row, meanwhile, gets much of the added space and is far less of a penalty box than before.

Reflecting the general direction other Hyundai products have taken in recent years, Palisade’s new cabin is more lavishly appointed, with what the automaker describes as “soft-touch materials (and) sophisticated finishes.”

Technology and safety

For 2026, all versions of Palisade feature a panoramic display that brings together Twin 12.3-inch displays atop the instrument panel. The touchscreen side controls an updated infotainment system that comes with standard wireless Apple CarPlay and Android Auto. Unlike so many new vehicles that force motorists to use the touchscreen for all vehicles functions, Palisade mercifully integrates more traditional controls below the touchscreen for handling most climate and audio functions. That’s a real plus.

Palisade also includes Amazon’s Alexa voice assistant with the optional WiFi hotspot. And there are numerous USB-C ports front and rear, several backed by 100-watt chargers.

I’d particularly recommend that anyone serious about off-roading with the XRT Pro opt for the forward ground view feature extending the capabilities of Palisade’s already useful Surround View Mnitor. It effectively works as if you had a transparent hood allowing you to see where your wheels are when traversing steep hills or narrow trails.

Another welcome addition comes in the form of two built-in dash cams – though only on top trim packages. Depending on trim, Palisade adds plenty of other useful tech features, such as a fast 15-watt wireless charger in the center console. You can even order a UV smartphone sanitizer that tucks away in the center console.

Considering Palisade’s popularity with family buyers, the SUV comes with a number of advanced driver assistance systems standard, including Forward Collision-Avoidance Assist, Blind-Spot Collision Warning, Safe Exit Assist, Forward Attention Warning, High Beam Assist, Navigation-Based Smart Cruise Control, Lane Following Assist, Rear Cross-Traffic Collision-Avoidance Assist, Parking Collision-Avoidance Assist-Reverse, and Remote Smart Parking Assist.

Pricing and availability

If you already own – or at least considered owning – the previous Palisade you may be in for a shock whe you check out the Munroney window sticker. The 2026 model has gone up as much as $3,000, depending upon the package. With the 3.5-liter naturally aspirated V-6, the starting price is now $46,295. The Calligraphy jumps to $55,555.

There are four trim levels of the Palisade Hybrid, starting with the SEL priced at $45,155 – a $2,220 upcharge over the V-6. At the high end there’s the $58,380 Calligraphy Hybrid – and, with all the boxes checked, that will push you over $60,000, as was the case with my test model.

Note that all-wheel-drive adds $2,000, while the delivery charge is $1,600.

While hybrid packages were a late addition, you should be able to find them at U.S. dealers at this point.