2026 Hyundai Palisade Hybrid Initial Drive Review: The Opulent, Fuel-Efficient SUV That Demands Attention from Competitors

      Hyundai

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      Hyundai has established an impressive lineup of crossover SUVs in various sizes and shapes, seamlessly entering new segments (except for towing). When the company introduced its Palisade three-row SUV in 2020, it immediately surpassed several competitors that had years to prepare and failed to do so, including models like the Jeep Grand Cherokee, Buick Enclave, and Lincoln Aviator.

      Having tasted success, Hyundai is poised for further triumphs. This year, they're set to launch an even better Palisade that is larger, more refined, and better equipped than before.

      Moreover, it's now more fuel-efficient than ever.

      With the 2026 Palisade Hybrid, Hyundai has designed a versatile crossover SUV adept at carpooling, moderate towing, and making a statement, boasting a fuel economy rating of up to 34 mpg combined.

      DREW PHILLIPS

      Hyundai

      Overview

      The 2026 Palisade Hybrid is a completely refreshed version of the full-size, three-row SUV that debuted in the 2020 model year. It accommodates up to eight passengers and offers an enhanced infotainment experience through dual 12.3-inch displays.

      Positioned at the top of Hyundai's lineup as the flagship vehicle, the Palisade showcases the influence of Genesis in its calm and high-quality interior fittings. Its new hybrid powertrain excels in fuel economy, complemented by thoughtful details such as a dash cam, massaging second-row seats, and a heated, power-sliding third-row seat suitable for taller occupants.

      The Palisade Hybrid exudes a vibrant, impressive style that conveys absolute design confidence, distinguishing it from mere faux elements like dummy air intakes and bull-bar guards. The sleek appearance of the electric-razor-inspired front end, stacked LED headlights, metallic rear roof pillars, and roof rails reflect light beautifully, enhancing its silhouette. It looks considerably more appealing than the original Palisade, which is no small feat. A shorter front overhang, substantial 21-inch wheels for the higher trims, and an angled rear roof pillar sharpen its overall design.

      Lower trims feature high-quality interior materials that complement a well-organized dashboard layout with low-mounted displays and clearly delineated controls. At the Calligraphy trim, the Palisade aims for a striking effect: my test model featured vertical gray wood grain accents and fabric-covered panels that could rival those of luxury brands. Some less expensive plastics are present on the lower console, but are mostly hidden from view. The elegant center console includes a charging tray and more gray wood grain; it’s truly attractive, though the positioning of the USB-C ports raises concerns regarding vulnerability to spills and dust. My test vehicle included a button that activates UV lighting in the console bin to sanitize small electronics, introducing an unexpected yet practical feature I hadn’t previously considered.

      Hyundai

      The driver’s seat in this premium model offers outstanding comfort. The leather seats in the Palisade adjust via a touchscreen interface and conventional controls, enhancing lumbar support and seat angle. Similar to Hyundai’s electric vehicles, the steering wheel position in the Palisade Hybrid requires some compromise: I can’t adjust it as low as I’d prefer without obstructing the gauge display.

      With an increase of 2.5 inches in body length and a 2.7-inch longer wheelbase (now measuring 199.4 inches in Calligraphy trim, with a 116.9-inch wheelbase), the Palisade Hybrid prioritizes rear passenger space. The second-row captain’s chairs include nearby USB-C ports and a pass-through to the third row; on SEL models, these are replaced by a three-person bench. The captain's chairs provide excellent comfort, power adjustments, heating, and cooling options—with enough range to make the third row genuinely usable for taller individuals. I managed to fit comfortably in the back behind the front and middle-row buckets adjusted to my height, enjoying ample headroom and knee space, despite a somewhat knees-up seating position. Medium-sized passengers will likely find this a pleasant space, and they might not need to squeeze back through the front seats after leaving the child safety locks on the rear doors. My exit from the backseat in a Starbucks parking lot was far from graceful, if you're curious.

      Driving Experience

      The Palisade Hybrid elevates typical driving dynamics to a luxurious level. It achieves this largely through its softly tuned strut and multi-link suspension, complemented by responsive electric steering and braking. The ride remains composed and comfortable, even when set to Sport mode. With 21-inch wheels and all-season tires, the Palisade Hybrid glides over bumps effortlessly, comparable to a Chevy Tahoe, which is no small compliment.

      Notably, the highlight is its new hybrid powertrain, designed to reduce fuel consumption significantly. Hyundai has refined its hybrid technology with a twin-motor setup that combines