First Drive: 2026 Hyundai Palisade

Six years after it made an auspicious entry into the three-row SUV market, Hyundai is giving its flagship Palisade model a major makeover, and with a first-time hybrid drivetrain, the 2026 package delivers more room, more power – and up to 629 miles range per tank. It’s also adding a “more off-road-capable” XRT Pro package. Headlight.News headed out to California wine country to put the 2026 Hyundai Palisade through its paces. Here’s our review.

Ask the folks at Hyundai to describe what they’ve done to make over the 2026 Palisade SUV and they’ll likely sum it up in a single word: “more.”

Hyperbole, sure, but it’s not inaccurate. The second-generation crossover checks that box in pretty much every category, offering more interior and cargo space, more safety and infotainment technology, more capabilities with the addition of a new XRT Pro package, and more miles per gallon with the introduction of a first-ever hybrid powertrain option.

“We wanted to offer a vehicle that truly meets the needs of today’s drivers,” Olabisi Boyle, product planning and mobility strategy chief, told me shortly ahead of my first drive of the 2026 Hyundai Palisade out in Napa Valley’s wine-soaked countryside.

Overview

While it’s not an entirely ground-up new vehicle, Hyundai has made plenty of changes to the 2026 Palisade. For one thing, it’s bigger in virtually every dimension, Hyundai using that to provide more space for passengers and cargo.

The overall look picks up on some of the styling cues seen on other recent Hyundai introductions, notably the H-shaped headlamps. But the automakers has steered clear of developing a single design language offered across its line-up in small, medium and large packages.

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.

Design

To start with, it grows 2.5 inches in overall length, with a 2.7-inch increase to its wheelbase. Most of that goes into the rear cabin to provide a roomier back seat and more cargo space. About the only place the numbers dip: a 1.6-inch shorter front overhang.

The 2026 Palisade picks up on some of the design cues we’ve seen on other recent updates from Hyundai, starting with the distinctive H-shaped headlights. On the whole, the stance is more upright, giving the 2026 Palisade a more imposing presence. But there’s also been more attention paid to fuel-saving aerodynamics with details such as active airflow shutters behind the front fascia.

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.”

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New powertrain choices

The 2026 Hyundai Palisade offers two new powertrain options:

• 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. The ICE powertrain will be offered in both two-wheel- and all-wheel-drive configurations;
• A new hybrid drivetrain pairing a 2.5-liter turbocharged inline-four with two electric motors, power going through a six-speed automatic Combined, they will deliver up to 329 hp and 339 lb-ft, though towing capacity drops to 4,000 pounds.

We’re waiting for final EPA mileage numbers on all packages but the V-6 in AWD configuration gets an estimate 18 mpg city, 24 highway and 20 combined. Expect the combined figure to top 30 mpg with the hybrid, Hyundai estimating it will deliver as much as 619 on a tankful of regular unleaded gas.

Driving impressions

I had the chance to drive several versions of the 2026 Hyundai Palisade, the Calligraphy AWD and the XRT Pro AWD, both with the 3.5-liter drivetrain. Both came across as improvements from what Hyundai offered with the first-generation package.

The engine is smooth and reasonably quiet, albeit not all that thrilling when it comes to acceleration. I’m anticipating the real performance package will be the hybrid arriving later this year – as has become the norm for several other Hyundai products offering a choice of naturally aspirated gas and hybrid options.

One of the things that’s impressed me most about Hyundai products over the last decade has been the automaker’s steady improvements in ride, handling and steering. The Calligraphy was deserving of its place as the most luxurious model in the Hyundai line-up, with a smooth, quiet ride, even as it easily negotiates the many twists and turns of Napa roadways. Steering, meanwhile, was precise and gave just the right amount of feedback for a big SUV.

I had a chance to test drive the Palisade XRT Pro package on a short track Hyundai had laid out on the back of a Napa winery. Obviously, it was meant to show off the new off-road model. That doesn’t mean it wasn’t a good demonstration as this was far more than what the vast majority of Palisade owners will ever experience. No, you won’t take it to Moab but it will give you confidence in most challenging road and trail conditions.

Palisade XRT

Along with the new hybrid powertrain, the other big story is the arrival of the Palisade XRT Pro which takes things up a notch from the earlier XRT package which was basically more show than go.

To start with, Pro brings a 1.0-inch lift in ride height over other Palisade packages. And it adds some useful hardware, including a electronic limited-slip differential, along with new and fully functional tow hooks front and rear.

Hyundai also has come up with aluminum skid plates but while these were a useful addition to our test vehicles – instilling much more confidence on a rock crawl – they will be offered as an option, rather than standard equipment.

XRT Pro makes particularly good use of several features, starting with a terrain response system offering settings like snow, sand and mud. Each adjusts vehicle settings like steering, shifts, throttle response and torque distribution to ensure maximum grip, as I discovered on the off-road course. Equally impressive: the downhill brake control which sets a safe – read slow – speed allowing a Palisade XRT Pro model to gently creep down even a steep decline without forcing the driver to go back and forth from throttle to brake.

Technology and safety

For 2026, Palisade features 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

As has become the norm for Hyundai – and many other manufacturers – the 2026 Palisade will roll out in stages, starting with the naturally aspirated trims that are now available in U.S. dealer showrooms. The hybrid packages, imported from South Korea, arrive a bit later this year.

The base 2026 Hyundai Palisade Se with the 3.5-liter V-6 starts at $38,935 before factoring in delivery fees, Calligraphy package jumping to $54,060. All-wheel-drive adds $2,000 on all packages but XRT Pro, where it’s standard.

The hybrid adds about $4,700, depending upon trim. Beyond adding the high-mileage powertrain, however, it brings some additional equipment, including an upgraded package of infotainment and driver’s aid systems. We’ll review the gas-electric 2026 Hyundai Palisade when it comes to market.