2026 Hyundai Palisade Hybrid

You could’ve called the Hyundai Palisade the rookie of the year when it first arrived on the scene in 2020. It was as good as, or better than, well-established veterans in the competitive class of 3-row midsize SUVs, and it has been one of our favorites in its class ever since. Now, the Palisade has gotten even better for 2026, entering its second generation. The first-ever Hyundai Palisade Hybrid (netting up to 34 combined mpg) is part of the redesign, and a non-hybrid version (reviewed separately) is still available. The new Palisade stays true to form with a spacious and upscale 3-row interior, class-leading warranty coverage, and luxurious upper trims, but adds a modern new look, updated technology, and what Hyundai calls a “reimagined third row.”

We’ve spent hundreds of hours driving and evaluating this generation of hybrid SUVs, including the Hyundai Palisade Hybrid.

The Hyundai Palisade Hybrid is all-new for 2026 as part of the Palisade’s second-generation debut. The first-gen Palisade first came out in 2020, and this is the first time it’s offering a hybrid powertrain. The new Palisade has a fresh look that’s sure to turn heads with a unique light signature and body lines that are boxy yet distinct. The already-roomy interior gets a little bigger, and it’s fully redesigned. One of the highlights of the new interior is the dual panoramic displays comprising a digital gauge cluster and a feature-rich infotainment display.

The closest rival to the Hyundai Palisade Hybrid is the Toyota Grand Highlander Hybrid. The Hyundai is a bit more affordable than the Toyota, but the Grand Highlander Hybrid offers slightly more interior space and even better fuel economy.

Before buying a Palisade Hybrid, check the Kelley Blue Book Fair Purchase Price to know what you should really pay. Hyundai Palisade resale value has historically been above average for the segment, and we expect this to remain the case with the new hybrid version. Recouping more money when selling a vehicle can mean a bigger down payment and lower monthly payments on the next one.

The 2026 Hyundai Palisade is powered by a 329-horsepower turbocharged hybrid 4-cylinder engine matched with a 6-speed automatic transmission and front-wheel drive (FWD) or all-wheel drive (AWD).

The driving experience of the Palisade Hybrid is swift, smooth, and quiet. A hushed cabin is something we love about Hyundai’s EVs, and this hybrid SUV shares a similarly serene atmosphere. The hybrid system delivers confident and effortless acceleration, which comes in handy if the Palisade is full of passengers. Handling, steering, and braking are fairly predictable for a 3-row SUV, which means it prioritizes straight-line comfort over corner-carving agility.

This hybrid powertrain is just plain better than the V6 in the non-hybrid Palisade. Granted, there’s something satisfying and reassuring about the grunt of a V6, but the hybrid offers more horsepower, more torque, and better fuel economy. It’s easy to recommend if your budget allows it. The advantages of the V6 are that it’s slightly cheaper and can tow an additional 1,000 pounds.

Fuel Economy

The 2026 Hyundai Palisade Hybrid is rated at 33 city/35 highway/34 combined mpg with front-wheel drive in trims with “Blue” in their name. Upper front-wheel-drive trims return 31 city/32 highway/31 combined mpg. All all-wheel drive models get 29 city/30 highway/29 combined mpg.

For reference, the V6-powered Palisade gets up to 21 combined mpg with front-wheel drive and 20 combined mpg with all-wheel drive. As for the Palisade Hybrid’s closest rival, the Toyota Grand Highlander Hybrid gets 36 combined mpg with front-wheel drive and 34 mpg with all-wheel drive.

When we first climbed into the cabin of the all-new 2026 Hyundai Palisade Hybrid, we instantly noticed a family resemblance to the brand’s flagship EV, the Hyundai Ioniq 9. This is a good thing. The seats are comfortable, the materials are lovely in the Calligraphy trim, and the technology is cutting-edge. It gets the basics right with the dual 12.3-inch displays that have become commonplace in Hyundai models, while adding perks like 100-watt USB-C ports and available reclining seats for some passengers.

We never cared for the gearshift buttons in the Palisade, and the new model replaces those with a steering column shifter that turns like an old-fashioned key for shifting into drive and reverse. As for climate controls, they’re handled through a dedicated screen that’s user-friendly thanks to a thoughtfully designed center console with a spot to rest your wrist while using the controls.

The 2026 Hyundai Palisade Hybrid has grown in size compared to the first-generation Palisade, resulting in more space inside. The third row of seats and the cargo area are both a little bigger than they were in the outgoing model. What Hyundai calls a “reimagined third row” includes available power sliding and reclining third-row seats, USB-C ports on both sides, and bigger windows, yielding better visibility for the passengers and the driver. We tried sliding the third-row seats all the way back and were impressed that there was still decent cargo space behind them.

Speaking of cargo space, there’s 19.1 cubic feet behind the third row, 46.3 cubic feet behind the second row, and 86.7 cubic feet when all of the rear seats are folded down. As for leg room, there’s 41.4 inches in the second row and 32.1 inches in the third row. Notably, the hybrid has slightly less second-row legroom than the non-hybrid Palisade because the hybrid’s battery is packaged underneath the front passenger seat. These interior dimensions are on the bigger side of the midsize SUV class, but the Toyota Grand Highlander Hybrid is roomier still.

The 2026 Hyundai Palisade Hybrid gets a bold look in line with the non-hybrid model. Stacked LED blocks make up the front and rear light signatures while pronounced wheel arches give the body a little muscle. A rugged-looking XRT Pro model is part of the Palisade’s redesign, but it’s not available with the hybrid powertrain.

Hybrid powertrain
This is the first time the wonderful Hyundai Palisade has ever offered a hybrid option. In addition to being the more efficient engine option, the hybrid makes more power and torque than the V6 in the non-hybrid Palisade, and it can tow up to 4,000 pounds.

Dual 12.3-inch displays
These big, high-tech, and user-friendly displays serve as the digital gauge cluster and infotainment display. We love them in every Hyundai model we’ve tested, and the Palisade Hybrid is no exception.

Wireless Android Auto/Apple CarPlay
These essential smartphone connectivity features make it effortless to bring your maps, music, and more to the screen in the car without taking your phone out of your purse or pocket. It’s always good to see them come standard.

Relaxation seating
Available Relaxation seating brings recliners to the second row and front passenger seats of the Palisade Hybrid. Power-reclining seats with leg supports were once reserved for expensive luxury vehicles, but now they’re available in a Hyundai family SUV.

100-watt-capable USB-C ports
Pretty much every new car has USB-C ports, but the ones in the Palisade Hybrid are capable of charging at speeds of up to 100 watts. That means faster charging for your devices, and it can even keep a laptop powered up through demanding tasks like gaming and video streaming.

Hyundai Digital Key 2.0
Can’t find your keys? No problem. With the new Hyundai Palisade Hybrid, you can use your phone as a key. Your smartphone or smartwatch can lock, unlock, and start this SUV, and you can even share digital keys with family and friends.

The 2026 Hyundai Palisade Hybrid’s power comes from a turbocharged 2.5-liter 4-cylinder engine mated to a pair of electric motors and a 6-speed automatic transmission, which produces a net output of 329 horsepower and 339 lb-ft of torque. Front-wheel drive (FWD) is standard, and all-wheel drive (AWD) is optional. For reference, the V6 in the non-hybrid Palisade produces 287 hp and 260 lb-ft of torque. The Palisade Hybrid has a max tow rating of 4,000 pounds.

5-Year/60,000-Mile Warranty

We’d be remiss if we didn’t mention that the 2026 Hyundai Palisade Hybrid will continue the Hyundai tradition of class-leading warranty coverage. It’s backed by a 5-year/60,000-mile basic warranty and 10-year/100,000-mile powertrain warranty, matched only by the Kia Telluride in this class.