2026
Hyundai Palisade Hybrid

For the most part, the Palisade’s controls are easy to use, with separate knobs for tuning, volume, and temperature. Its boxy design creates lots of usable space for people and stuff, and some trims seat eight when equipped with a second-row bench seat. Even though the third row isn’t as spacious as a minivan’s, it’s easy to access and works in a pinch. You can learn more in our first-drive review of the nonhybrid Palisade.

The top-of-the-line Calligraphy trim is an astounding value for the money, offering luxury features like Nappa leather upholstery, a suede headliner, massaging front seats, and heating and ventilation for the front and second row seats, and second row captain’s chairs. It also comes with powered third-row seats that fold down at the touch of a button for cargo storage, and powered second-row seats with multiple options for moving them out of the way for third-row access.

Even with a four-cylinder engine, which tends to rev more loudly under stress than a big V6, the Palisade Hybrid impressed us with a hushed interior. There’s only a tiny bit of high-pitched whine from the electric motor and a slight growl when the engine reaches around 4,000 RPM, but otherwise there’s very little wind or road noise.

As with all vehicles we evaluate, we plan to perform instrumented fuel economy testing on the Palisade Hybrid. In the meantime, we’ve observed fuel economy that’s reasonably close to the combined 29 mpg EPA estimate on the window sticker of our Calligraphy AWD. A front-wheel drive SEL Premium model promises 34 mpg combined, which is even more impressive.

The extra horsepower of a combined electric motor and combustion engine gives the Palisade Hybrid some much-needed pep. The same is true when accelerating from a stop, when the instantaneous low-end torque of electric power can get the Palisade Hybrid moving in a hurry.

We noticed some issues with delays at low speeds. Hit the throttle to accelerate from a rolling stop—such as merging from a side street to a busy road—and you’ll feel some hesitation. Every driver who has spent time in the car has complained about an initial delay followed by a big clunk and then a surge of power in these situations. One of our testers says it feels like the car is fighting a battle between smoothness and responsiveness. We hope this issue can be addressed with a software update, because it really mars the experience.

If the last SUV you drove was powered by a four-cylinder engine and wasn’t a hybrid, the Palisade Hybrid would likely be a major improvement when it comes to refinement. But the powertrain is just not as smooth as the Palisade’s V6.

Side effects of the hybrid’s additional heft

It’s admirable that the Palisade Hybrid only weighs 66 pounds more than the nonhybrid, even with the addition of an electric motor and batteries. However, this weight distribution has resulted in slightly different handling characteristics, including a slightly firmer-feeling suspension that responds a little more abruptly to potholes and allows a bit more vibration to pass through the steering wheel.

The same things we don’t like about the nonhybrid model

Read our full first-drive review of the nonhybrid Palisade to find out more. In summary, some of the climate buttons are too small, the twist gear selector is hidden behind the steering wheel, and the powered second-row seats are slow to move into place or out of the way.

What We’ll Keep an Eye On

Everything we’ll keep an eye on for the nonhybrid model

Those include third-row usability, driver’s seat comfort and adjustability, and reliability. That last one is especially important as the Palisade Hybrid uses a totally new hybrid setup—albeit one that’s backed by a 10-year/100,000-mile powertrain warranty, hybrid system components warranty, and hybrid battery warranty.

While we can’t draw a comparison between the two models until we’re finished testing, we can generally say that the nonhybrid offers a smoother, more refined driving experience. It’s also in reach for more consumers, considering that the Hybrid isn’t available in the lower-level SE, SEL, and SEL Convenience or off-roady XRT Premium trims. But if you’re considering a higher-end model, the Palisade Hybrid could offer some serious fuel savings.

Until we test for our real-world fuel economy data, we can only make estimates based on EPA numbers. On the SEL Premium, Limited, and Calligraphy trims, the Palisade Hybrid costs $2,200 more than a comparable nonhybrid model. However, the Hybrid also has a destination fee that’s $105 higher, for a total difference of $2,305. If you buy an AWD hybrid, drive 12,000 miles each year, and pay $3 per gallon for gas, that difference takes about four years to make up. If you drive 20,000 miles a year, it pays for itself in two and a half years. If gas prices go up, the payoff is even quicker.

The small town where we test cars has two “good” pizza places. One has better Sicilian-style pizza, while the other serves better thin-crust. Both get the same score on restaurant review websites, but everyone in the office has an opinion about which one is better. We suspect that devotees of the Grand Highlander and Palisade hybrids will divide themselves into similar camps.

The Grand Highlander Hybrid offers two powertrain choices. The Hybrid LE has a starting MSRP of $44,710 and features a non-turbo 2.5-liter four-cylinder engine, gets an EPA-estimated 34 mpg combined with all-wheel drive, and only makes 245 horsepower. The Hybrid Max Limited is a closer competitor to the Palisade Hybrid. It starts at $54,690 and is powered by a turbocharged 2.4-liter four-cylinder, which is good for an EPA-estimated 27 mpg and 362 horsepower.

Again, we can’t crown a winner until we finish testing, but we can say the Palisade Hybrid seems to have the Grand Highlander Hybrid beat on interior comfort, quietness, and handling. The Toyota has a higher predicted reliability score and a slightly smoother hybrid powertrain than the Hyundai. The differences will likely be marginal, however, and the rivalry will be fierce until another contender appears.

It is worth remembering that our tests showed the Toyota Sienna was capable of fuel economy in the mid-30s with front-wheel drive. It also offers all-wheel drive. The Kia Carnival Hybrid got in the low-30s. Both minivans offer more room and third-row access that’s both better and easier than all but the largest full-sized SUVs.

Hybrid or not, every Palisade comes with Hyundai’s SmartSense suite of active safety and driver assistance systems that include automatic emergency braking (AEB), blind spot warning (BSW), rear cross traffic warning (RCTW), and reverse automatic emergency braking. Other standard features include adaptive cruise control (ACC) and lane centering assistance (LCA) informed by navigation data. There’s also a standard driver attention monitoring system that, so far on the nonhybrid, has yet to bother us with a false positive, unlike some other systems out there. We noticed that the automatic lane change function can steer somewhat abruptly, so we’ll keep an eye on it.

There are a few unique safety features, including Safe Exit Assist, which can prevent rear passengers from opening a door into vehicle or bicycle traffic when the Palisade Hybrid is parked, and a rear occupant alert system that scans for children when the vehicle is parked and locked. If it detects movement, the SUV will honk the horn and send an alert to the driver’s phone. Such a system adds valuable protection to reduce the risk of an unaccompanied child gaining access to the vehicle or being left behind.

This is the first Hyundai to have built-in dash cameras that can provide continuous recording while driving, looking at both the driver and the road ahead. The cameras can also monitor the vehicle when parked. Footage is stored on a MicroSD card, accessed through the glove compartment. The dashcam controls aren’t immediately clear.

A video rearview mirror with a liftgate-mounted camera is available, and it gives an unobstructed view behind the SUV. We’ve found that this feature is most appreciated when the vehicle is loaded with passengers and cargo.