The 2026 Hyundai Palisade Hybrid is the Korean brand’s idea of a full-size, 3-row SUV that tries to do everything at once. Haul 7 or 8 people, sip fuel like a compact, and make you feel slightly smug when you pass by a luxury SUV. So can this SUV be the family road trip king and the accountant’s favourite hybrid?
Performance
Engine – For the first time, the 2026 Hyundai Palisade is available with two powertrain options. The standard engine is a new 3.5L V6 while the optional engine is a 2.5L turbocharged hybrid. In this review, I drove the hybrid 4-cylinder. You can read my V6 review here.
The 2.5L turbocharged engine is matched to an electric motor. Combined, the Palisade hybrid produces 329 hp & 339 lb-ft of torque (245 kW & 460 Nm). This is less like a Ford Escape Hybrid and more like a Toyota Grand Highlander Hybrid Max. On paper, this has nearly as much power as an Acura MDX Type-S. It does the usual hybrid stuff though: electric assist off the line, seamless blending of power, and the sort of mid‑range shove that makes overtaking a semi trailer actually easy. Torque from the electric motor fills in the gaps where the turbo might otherwise take a breath. The result is strong, confident acceleration, even with a few kids, a dog, and half of Costco in the back.
The hybrid system uses a relatively compact battery, around 1.6 kWh, but leverages it smartly. It assists the engine under load, harvests energy when you brake, and lets the Palisade creep through parking lots and traffic jams on electric power alone for short bursts.
Fuel Economy – Officially, it’s rated for 8.3 L/100km (28.3 MPG) in a city and 7.9 L/100km (29.7 MPG) on a highway. That’s not quite as good as its smaller brother, the Santa Fe Hybrid, but it is better than the Toyota Grand Highlander Hybrid Max which is probably the closest competitor to this. In the real world, you’re looking at around 8.5 L/100km (27.6 MPG) but that’s still really good given the size, weight, and the temptation to use all that torque every time a gap opens in traffic.
Transmission – The 2.5L turbo engine is paired with a traditional 6-speed automatic transmission. No eCVT trickery with this one. It changes gears smoothly but it’s not the first word in performance oriented gear shifts. There is a tad delay of the paddle shifters every time you use them.
Braking – The brakes on these SUVs are nothing special or extraordinary. They are normal brakes, which help with reduced costs, and they have enough stopping power to bring the big SUVs to a stop. The brake pedal feels firm and is easy to modulate for smooth stops. Regenerative braking helps recoup some energy for the hybrid battery but the Palisade does not allow for different regen modes like the Tucson Hybrid.
Handling – The Hyundai Palisade was not made to have the same driving dynamics as the Mazda CX-90 or Acura MDX. Having said that, it feels planted and composed around corners. The steering firms up as the speed builds but it’s light enough at slow speeds for easy parking. There is some body roll through corners but it’s not overly dramatic.
Comfort
Ride Comfort – One area where the 2026 Hyundai Palisade really shines is with the quality of the ride. It is incredibly smooth over rough roads. It may not have air suspension or adaptive dampers but the ride it delivers is almost like those in luxury SUVs.
Further aiding to the comfort while driving are the front seats. For my body type, they provided ample padding and support on those long commutes to and from work. Additionally, the Calligraphy trim adds an Ergo Motion function. It’s not quite a massaging seat but rather it prevents your back or butt from becoming numb on longer journeys.
Interior Space – The new Palisade is slightly larger than before which means a bit more occupant space. In the front, I had no issues for my above average height of 6’4”. There was loads of headroom and legroom. In the second row, space is a bit less than the front but it’s still more than enough for my height behind my tall driving position. The 2nd row is available with bench seats or captain’s chairs but that depends on the trim. In the Calligraphy, the captain’s chairs are power operated and can recline (along with the front seats too). Getting into the 3rd row is easy but it takes a bit longer in the top spec trim due to the power operated 2nd row seats. They take a while to slide and tilt forwards. Once you’re in the 3rd row, headroom is Ok but not the best in class. As for legroom, it depends on how generous the person in the 2nd row is. If they move their seat all the way back, your knees will be right against the back of the 2nd row seat. For someone as tall as me, it’s a bit tight back there but for shorter individuals, it should be fine for shorter journeys. Additionally in the Calligraphy trim, the 3rd row seats can tilt and slide, albeit only a bit.
Behind all rows of seats, the 2026 Hyundai Palisade has 540 L (19 cu-ft) of cargo space which is a slight improvement over the outgoing model. With the 3rd row seats folded, cargo capacity increases to 1,310 L (46.3 cu-ft). In the Calligraphy trim, there are buttons to the side that allow you to choose which seats to raise or lower across the 3rd or 2nd rows. With the 2nd & 3rd rows folded, the 2026 Palisade has 2,455 L (86.7 cu-ft) of cargo space. Under the trunk floor, there is a little bit of storage space but no spare wheel like the non-hybrid variant.
Noise, Vibration, & Harshness – Another major improvement for the 2026 Palisade hybrid is the cabin noise, or rather, lack of cabin noise. Wind noise is non-existent, tire noise is a whisper and the engine is remarkably quiet under normal driving conditions. At higher rpms, noise from it is more noticeable. Additionally, the transition from hybrid to gas is very smooth. It does not jerk the car when it turns the engine on. At times, it’s so quiet in the cabin it almost feels like the Palisade is an electric SUV.
Odds and Ends
Pricing – In Canada, the 2026 Palisade Hybrid starts at $60,499 CAD ($44,160 USD, SEL) with this Calligraphy trim costing $65,699 CAD ($56,780 USD).
Gadgets – Here in Canada, the entry-level 2026 Hyundai Palisade has quite a few convenience features such as a wireless phone charging pad, heated front & 2nd row seats, a heated steering wheel, and 20-inch wheels among others.
But if you want your Palisade brimming with gadgets, then the Calligraphy trim is for you. As I mentioned earlier, this trim has power operated seats across all three rows with the 1st and 2nd having a relaxation mode where the seats recline for a relaxed seating position. The front two rows also have heating and ventilating with the 3rd row having heated outboard seats. There’s also a head-up display, dual sunroofs, a rear camera mirror, surround view cameras, soft Nappa upholstery, a UV cleaner for your smartphone, BOSE audio system with 14 speakers, and a built-in front & rear dashcam.
Interior Design – The cabin of the new palisade looks upscale and premium. That is, depending on which trim you choose. Lower trims have more plastics than the Calligraphy which doesn’t provide the same premium feeling. Whereas in the top spec trim, leather lines the dashboard, center console, and door panels. There’s also a fabric material that extends from the center to the far right side of the dashboard which is illuminated by the ambient lighting system at night.
As for the functionality, the Palisade uses mostly physical buttons. Some commonly used infotainment functions, such as navigation, radio, settings, and so on, are physical controls just under the touchscreen. There are also two large dials for climate temperature but the rest of the climate controls are displayed on a small touchscreen. Overall, the Palisade has a good blend of physical and touchscreen controls that should be followed by more manufacturers.
Exterior Design – “Striking” would be a good word to describe the exterior of the 2026 Hyundai Palisade. The overall shape is boxier than before but it still has a few subtle curves. It’s not a Cybertruck after all. The front daytime running lights and rear taillights look like they belong in the Blade Runner universe. The back is also reminiscent, a little bit, of a Range Rover and I love the look of the spoiler mounted brake light.
Safety – The standard 2026 Hyundai Palisade is available with just about every safety & driver aid that can be equipped on this SUV. Moving up to the Calligraphy adds blind spot collision avoidance, highway driving assist 2, and remote park assist. This allows you to move the car forwards or backwards into a tight parking spot without anyone in the car. Simply use the remote start function and then press & hold on either the forward or backwards buttons on the key fob to make the car move. It will automatically stop if it detects an object or if the key fob is too far away from the car.
Warranty – The 2026 Hyundai Palisade is covered by a 5 year / 100,000 km new vehicle and powertrain warranty. In the United States, the basic warranty is 5 years / 60,000 miles and the powertrain warranty is 10 years / 100,000 miles. For more information on Canadian warranty,click here. For USA warranty information,click here.
Conclusion – So, yes this hybrid will cost you more up front, but you get significantly better fuel economy, a quieter drive, and the same amount of features. It may not be the most exciting 3-row when you toss into a corner but it was designed to make your life easier and fuel stops less frequent. So as an overall package for larger families, this one is hard to beat.
Thank you to Hyundai Canada for providing the Palisade Hybrid. www.HyundaiCanada.com
2026 Hyundai Palisade Hybrid Gallery
