For its second generation, the popular three-row midsized Hyundai Palisade has gone big, with increased size, a roomier interior, and more premium features. It’s also gone hybrid. In fact, it’s the first model powered by Hyundai’s newest hybrid setup, which is based on the company’s existing 2.5-liter turbocharged four-cylinder engine. There’s still a nonhybrid Palisade (which we also tested) that’s powered by a naturally-aspirated V6.
The new Palisade’s stylish interior and exterior might make you wonder if this is yet another refreshed model that prioritizes aesthetics over intuitiveness. Thankfully, the Palisade remains refreshingly logical. The exterior door handles are simple, it has large windows for excellent outward visibility, a straightforward infotainment system, and mostly easy-to-use controls. Aside from a missing spare tire, a tiny “hybrid” badge on the back, and a slightly higher price tag, it looks identical to the nonhybrid Palisade.
The main benefits of the Hybrid version, at least on paper, are improved fuel economy and extra horsepower. The Hybrid is packing 329 hp compared with the nonhybrid’s 287. Numbers on a specifications sheet are one thing, but real-world results at our track and out on the roads sometimes tell a slightly different story, and that’s what happened with the Palisade Hybrid.
First, the good news: The Hybrid version is decidedly quicker than the regular Palisade. But flooring it from 0 to 60 mph isn’t the way most of us drive, and our testers found that, when driving it normally, the hybrid powertrain suffers from some unfortunate low-speed hesitations, along with more than a few bumpy shifts. Further, the all-wheel-drive Hybrid, at 26 mpg overall, only managed a 6-mpg gain over the regular AWD model in our testing. We typically see much larger gains with hybrids. Plus, the Toyota Grand Highlander Hybrid absolutely trounces the Hyundai, at 35 mpg overall.
After we tallied all our instrumented test results and subjective evaluations, the Palisade Hybrid ended up with a stronger road-test score than the conventional version. And it scores higher than most other three-row midsized SUVs by a good margin. But unlike what we see with most hybrids, the Palisade Hybrid isn’t the slam-dunk choice here between the two Palisades. That’s because the nonhybrid Palisade actually offers a smoother, generally more refined driving experience. It’s also more accessible financially to consumers, since the Hybrid isn’t available in the lower-level, less expensive SE trim like the conventional version.
To that end, our testers had varied perspectives as to which one they preferred, and which they’d choose for themselves if they were doing the buying.
“Even though the Hybrid doesn’t shift as smoothly and doesn’t ride quite as well as the regular version, I enjoy its extra power, and it’s still a very nice package overall,” said one tester. “I think I would take the Hybrid over the gas-only model for the better fuel economy, and just get used to the powertrain quirks.”
“Just as with the regular Palisade, the Hybrid is a super nice vehicle,” said another tester. “It’s quiet, comfortable, spacious, and loaded with features. It’s stylish, too. But aside from the improved fuel economy, I actually enjoyed my time with the V6 Palisade more than with the Hybrid. True, the V6 engine feels more lethargic and doesn't have the torque response of the electric motors like the Hybrid. But the V6 is smoother and more refined. The nonhybrid model also rides more comfortably over bumps.”
We bought a 2026 Hyundai Palisade Hybrid Calligraphy AWD for $60,995—anonymously from an area dealer, as we do with every vehicle we test—for the purpose of this road test review. Our Palisade Hybrid was assembled in Ulsan, South Korea.
Driving experience
The Palisade Hybrid comes standard with front-wheel drive, with all-wheel drive optional on all trims. The Hybrid uses a 2.5-liter turbocharged four-cylinder engine paired with two electric motors and a six-speed automatic transmission, generating a total output of 329 hp. In terms of pure acceleration, the Hybrid has it all over the regular Palisade—the latter which we found could feel surprisingly lazy at times in our testing. The combined grunt of an electric drive and a combustion engine gives the Palisade Hybrid some much-needed pep, sprinting from 0 to 60 mph in a quick 7 seconds flat, faster than most hybrid SUVs. Meanwhile, the conventional version lags behind at 8.4 seconds.
While neither powertrain is perfect, we found more issues with the Hybrid during regular driving. It feels rougher around the edges, suffering from some delays at low speeds. Hit the throttle to accelerate from a rolling stop—such as merging from a side street onto a busy road—and you’ll feel some hesitation as it first takes off under electric power, often followed by a clunk as the gas engine turns on, and then a slightly abrupt surge of power. At higher speeds, like 25 mph and above, the handovers between electric power and the gas engine are nearly imperceptible. There's also plenty of giddyup for merging onto the highway or climbing a steep hill.
The Palisade Hybrid isn’t a sporty vehicle, but its handling is appropriate for a big three-row SUV. The suspension does a good job quelling body roll in corners, especially for a vehicle this size, and the steering delivers good feedback to the driver about front-tire grip. Although the two Palisades handle similarly, the Hybrid feels a little sharper, with a tauter suspension tune and less body roll through corners. The Hybrid also performed better through our avoidance maneuver exercise. The downside to the slightly firmer suspension is that the Hybrid responds a little more abruptly to potholes and allows more vibrations to reach the steering wheel. The differences are minor, and both models are among the best-riding in the class.
As with many hybrids, panic-brake stopping distances proved slightly longer than with the regular Palisade, though only by a few feet. Both versions would benefit from shorter stopping distances in the wet.
Cabin noise is kept to a minimum. It’s more hushed inside the Palisade than most three-row SUVs, feeling more like a luxury model than a mainstream vehicle. While the Hybrid can run on electric power at low speeds, once the grittier four-cylinder gas engine turns on, it’s louder than the regular Palisade’s smooth V6.
Cabin comfort
Most buyers spring for the Palisade’s upper trim levels, like the Limited and Calligraphy. The Hybrid Calligraphy we tested has an impressive-looking interior. The seats are upholstered in Nappa leather, and the headliner, sun visors, and windshield pillars are covered with a super-soft suede-like material. On the features front, the front seats have a massage function, and second-row passengers get comfy heated and ventilated captain’s chairs and their own climate controls.
The Palisade is longer than its predecessor and can seat seven or eight, depending on its configuration. Its boxy design makes for a predictably large interior, with no sloping roofline cutting into headroom. Still, our nitpicking testers found some items to complain about with the driving position, such as the overly firm armrest padding and the fact that some important items toward the upper portion of the driver’s instrument screen are blocked when the steering wheel is adjusted to a lower position.
Most testers liked the Palisade’s front seats, though they didn’t necessarily love them. The seats offer a wide range of adjustments and good support, but comfort depends on body type, not to mention patience with the controls. The second-row captain’s chairs are good in most ways, with lots of headroom and plenty of adjustability. But owing to the Hybrid’s slightly taller floor, foot space is tighter under the front seats, and underleg support isn’t as generous as in the nonhybrid model. As with up front, the door armrests are on the too-firm side.
Third-row space isn’t bad among midsized SUVs, but comfort is lacking. There’s enough headroom for average-sized adults, and knee room is manageable if the second-row passengers are kind and move their seat slightly forward. But foot space under the second-row seats is squished, and the bottom cushion is low enough to the floor that there is hardly any underleg support, which forces adult passengers into an uncomfortable knee-bend. Further, it’s a tight squeeze to get back there, and the power-operated second-row seats move almost comically slowly.
We were able to fit 2 large suitcases and 5 backpacks behind the Palisade Hybrid’s upright third-row seat, which is competitive with other three-row midsized SUVs. Maximum cargo volume with the second- and third-row seats folded down is identical to the nonhybrid Palisade at 43.5 cubic feet. That’s 5 cubic feet less than the Toyota Grand Highlander Hybrid, for example.
Controls and usability
The Palisade proves that the future doesn’t have to be confusing when it comes to vehicle interiors. Many automakers have gone minimalist, replacing physical buttons and knobs with massive touchscreens and capacitive-touch panels. While the Palisade looks pleasantly modern, most of the controls are familiar enough that they’re easy to use. The center infotainment touchscreen offers quick access to media, phone, navigation, and other vehicle features in a clutter-free and logical menu structure. The bright, large labels and icons contrast highly with the dark background, making it easy to quickly find different features.
Unfortunately, the climate controls are located down low on a separate capacitive-touch display beneath the center screen. This panel isn’t always responsive to quick inputs, and its small buttons are difficult to accurately tap. Most safety-related functions—including wipers, headlights, and the emergency flashers—use physical controls that are straightforward and easy to operate. We like that there are knobs for audio volume and tuning, and temperature adjustment knobs.
There’s a good mix of concealed and open storage up front, although we wish the front door pockets were a little more generous.
Active safety and driver assistance
Standard active safety and driver assistance features include automatic emergency braking with pedestrian and cyclist detection, automatic emergency braking that operates at highway speeds, blind spot warning, rear cross traffic warning, reverse automatic emergency braking, lane centering assistance (LCA), lane departure warning, lane keeping assistance, adaptive cruise control, and automatic high beams. Hyundai's standard "Highway Driving Assist" uses HD mapping to support LCA and is designed for use on limited-access highways. However, LCA itself can be activated on any road that has clear lane markings, not just mapped highways. The top Calligraphy trim comes with Highway Driving Assist II, which adds automatic lane change assistance.
We’re happy to see that both a rear occupant alert system and a belt minder come standard. The former is designed to remind the driver—based on rear-door logic—to check the rear seat when the Palisade is turned off to help prevent children and pets from being unintentionally left behind in the vehicle. The belt minder alerts the driver if a rear passenger unbuckles their seat belt during the trip.
The Palisade also comes with a Safe Exit Assist system, which can sense if a vehicle or bicycle is approaching from behind or alongside when parked on a city street, and an occupant is about to open a door into traffic.