2026 Hyundai Palisade: Aiming for the Top Spot
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The most popular midsize SUVs in the country include the Dodge Durango, Ford Explorer and Toyota Highlander/Grand Highlander. This trio and more represent stiff competition for the Korean contender that launched six years ago.
Hyundai prefers not to talk about the Durango, probably because it would be too embarrassing to admit that sales of this 15-year-old model are still exceptional. However, the company doesn’t make it a secret that it wants to win over buyers of the Explorer and Highlander—two vehicles that offer (or used to offer) hybrid technology, which Hyundai considers one of the key features of this new generation.
- Also: 2026 Hyundai Palisade Lands in Canada, to Start at $53,699
- Also: Hyundai’s Next-Gen Hybrid System Could Be the Next Big Thing
That’s right: the 2026 Palisade is set to gain a 329-horsepower hybrid powertrain in a few months, combining a turbocharged 2.5-litre four-cylinder engine with a six-speed automatic transmission and an electric motor. This system should allow for an average fuel consumption of just 7 L/100 km and could also be found under the hood of future Genesis products.
In the meantime, we were given the opportunity to test drive a few V6-powered models. While other automakers have downsized their engine offerings, Hyundai knows that many North American drivers still appreciate six-cylinder mills.
Larger and Roomier
The new Palisade is taller and 65 mm longer overall, most of which comes from the wheelbase. Access to the rear seats and comfort in the third row are improved in the process. This vehicle is clearly on a mission to challenge the segment leaders that offer more interior space. Think of the Chevrolet Traverse, Toyota Grand Highlander and Volkswagen Atlas, which all enjoy success among large families. Seven- and eight-passenger configurations are available, with maximum cargo space amounting to 2,455 litres.
Aesthetically, the 2026 Palisade is a change of direction. Following the lead of Hyundai’s latest products, styling is quite polarizing. Some won't like it, but there's no denying the Range Rover inspiration, especially when viewed from the rear three-quarter angle, where the windows, roofline and headlight design are very similar. It's also worth noting that aerodynamic performance has been improved thanks to multiple underbody shields, active shutters and a sloping roofline.
Available with a selection of nine exterior colours and three interior themes, the new Palisade introduces an adventurous XRT Pro model—a direct response to SUVs like the Traverse Z71, Explorer Tremor and Honda Pilot TrailSport. A 25mm suspension lift, all-terrain tires, a digital inclinometer and a Ground View Monitor are some of the highlights, enabling drivers to venture a little further off the beaten path. What’s more, you’ll easily recognize this unique model with red tow hooks and a more rugged appearance than the top-line Ultimate Calligraphy model, which is the one we got to drive for a short period of time.
Made in Korea
Unlike the vast majority of its rivals, the 2026 Hyundai Palisade is not assembled in the United States. This will ensure price stability and more consistent availability. Hyundai makes no secret of the fact that it will use its momentum to snatch sales from Toyota and Honda, which sometimes make their customers wait very long.
That said, in Canada, the company will continue to focus on the more luxurious and more expensive Ultimate Calligraphy model, supposedly because demand is strong, but mainly for profitability reasons. Let’s be real: with Hyundai pushing sales of this high-price SUV at the expense of a cheaper, entry-level model, it's hardly surprising that luxury has become more popular among Canadians.
The level of content in Ultimate Calligraphy trim is quite amazing. For example, there are heated and power-folding seats in all three rows, creating a completely flat floor. In addition, the driver's massage function and ventilated seats in the first two rows are features rarely offered by the competition. Hyundai has installed two dash cams that allow you to continuously record activities both while driving and when stationary—another a unique feature in the category.
Add premium fit and finish, state-of-the-art connectivity (including a digital key) and meticulous attention to detail, and you have a product that could definitely wear the Genesis badge. In fact, you probably don’t need to make the jump to a GV80. The 2026 Palisade is that good—more impressive even than an Acura MDX or Infiniti QX60, both of which sell for higher prices.
Down to 287 Horsepower
For 2026, Hyundai is swapping the old 291-horsepower 3.8-litre V6 for a “new” engine shared with Kia's Carnival and Sorento. We're talking about a 3.5-litre V6 that produces 287 horsepower (equivalent to Honda's Pilot) and tows up to 5,000 lbs. Unfortunately, this unit doesn't burn any less fuel than its predecessor. Where’s the benefit, then? Theoretically, you get a better power-to-displacement ratio, as well as slightly lower emissions.
The engine is extremely flexible and quiet at cruising speed. Incidentally, the engineers that worked on the new Hyundai Palisade have done an exceptional job with noise cancellation, especially when compared to the Pilot, Atlas and Nissan Pathfinder. However, the Palisade suffers from a lazy transmission that sometimes makes passing other vehicles difficult. Moreover, throttle response is disappointing, as is often the case with Korean products. This particular issue could be addressed soon with the Palisade Hybrid, whose extra 42 horsepower and more generous torque promise to improve acceleration.
Equipped with an auto-levelling independent suspension, the Palisade also receives beefier and more powerful brakes, something that will be appreciated when towing. On the other hand, the difference between the various drive modes remains negligible, although steering firms up nicely in Sport mode. We highly doubt that many drivers will use the drive mode selector at all.
Should You Wait For the New Telluride?
The new 2026 Hyundai Palisade has a lot to offer. It’s comfortable, refined, well-equipped and blessed with a proven powerplant. Don’t forget the more inspiring driving experience and more modern interior layout, while the price range is still reasonable. You can always opt for the more affordable Preferred Trend model starting at an all-inclusive price of $56,520, so remember that when dealers try and force you to move up to an XRT Pro ($60,620) or Ultimate Calligraphy ($65,320) model.
What about Kia’s second-generation Telluride? For now, it's unclear whether the Palisade's cousin will also be getting a hybrid powertrain. However, styling is likely to be more attractive, while Kia will use a different marketing strategy. Along with the Grand Highlander, it will prove a formidable rival for the Palisade, whose hybrid models (Luxury and Ultimate Calligraphy) will go on sale in November for an additional $3,200.
One thing is certain: with this new Palisade, Hyundai will gain a larger market share in the three-row midsize SUV segment. Remember, the more compact Santa Fe is also part of this club, as is the recently launched and fully electric Ioniq 9. That is quite a convincing trio of SUVs, backed by the Korean manufacturer’s superior warranty as always.
