Calistoga, California – Prepare to be wowed by the 2026 Hyundai Palisade. Not only has the Korean car maker totally revised its flagship SUV’s appearance and content, it has also added a hybrid powertrain and an off-road model.
This major update has been in the works for a while, Hyundai execs said, and the planning has clearly paid off. The new three-row, full-size SUV is gorgeous to look at, smooth to drive and offers more bells and whistles than we can possibly mention in a single first drive feature.
With a host of new earthy colours and a completely new look, the Palisade has to be one of the most eye-catching full-size SUVs on the road. It’s not easy to make a big, boxy vehicle turn heads, but the Palisade does. From the front end with its distinctive vertical bars for running lights and vertical grille, through the long hood and raked windscreen, all the way to the sleek D pillar and slightly rounded behind, the Palisade’s exterior gives off vibes that its chief designer, Soo Min Cho, called “architectural”.
Inside, the theme continues with design nods to mid-century modern furniture that include a cylindrical centre console and a gorgeously curved dash, all encased in supple leather. The effect is luxurious and almost decadent.
This is not just a design feature, but also the result of the SUV’s new larger dimensions, inside and out. It’s longer, taller and wider than before, and has a longer wheelbase. This gives it the most interior space among its competitive set, including Kia Telluride, Honda Pilot and Toyota Grand Highlander. The extra space is most evident in the two rear rows, where available power seats in the middle and rear make for an infinitely adjustable space that easily and comfortably accommodates tall adults in any of the seats.
Driving the Palisade is simple, smooth and comfortable. Intuitive controls, easy-to-see displays and the lovely cabin set you up for a successful road trip. New sound-deadening materials and thicker glass make for a quiet ride, while new suspension mods have improved comfort in all three rows. And, in spite of its greater bulk, the 2026 Palisade stops several feet shorter than its predecessor, thanks to bigger brakes.
But the biggest change for 2026 has to be the hybrid drive. This is the first hybrid Palisade, and it is a critical part of the company’s electrification strategy. By offering the flagship vehicle with a hybrid, Hyundai is hoping to attract more buyers who are looking to electrify, said Olabisi Boyle, Hyundai Motor North America’s senior vice-president of product planning and electrification strategy, at a media event in California.
The hybrid will be powered by a 2.5-litre turbo four-cylinder powerplant that will produce 329 horsepower and 339 pound-feet of torque. Fuel economy is planned at seven litres per 100 kilometres on the highway with a range of more than 900 kilometres. It will be able to tow approximately 4,000 pounds.
The hybrids are not yet available, with first deliveries expected in the fall of 2025, but we do know there will be two trims for Canadian buyers, Luxury (starting at $60,499) and Ultimate Calligraphy ($65,699).
Also new for the Palisade, and a first for Hyundai overall, is the XRT Pro model. It’s a ruggedized, off-road capable machine that we tested over a rocky and steep hillside track in the Sonoma area. The vertigo-inducing drop-offs alongside the off-road course made for a nerve-wracking, white-knuckle drive, but the Palisade’s sure-footedness eased the anxiety. It handled rough roads and a built off-road course with equal ease, demonstrating control and capability over the obstacles.
The XRT Pro is equipped with an electronic limited-slip differential, downhill brake control, higher ground clearance, and improved approach, breakover and departure angles to manage tough terrain. There are also tow hooks and pitch and roll, compass and elevation displays, along with the surround-view monitor which provides a view of the ground ahead. It rides on 18-inch wheels with all-terrain tires and has leatherette seats with a unique mountain pattern.
It is powered by the Palisade’s gas engine, which is also new this year. The naturally aspirated 3.5-litre six-cylinder powerplant replaces the outgoing 3.8-litre V6. The new engine lose
s a tiny bit of power, dropping from 291 horsepower and 262 lb-ft of torque to 287 and 260, respectively. It retains a 5,000-pound towing capacity.
Going from the 3.8-litre to the 3.5-litre was really about meeting emissions standards, not fuel economy, because that hasn’t changed, said Julian Cheng, Hyundai Auto Canada Corp.’s senior product planner. That number is 11.1 litres per 100 km. “The trend, of course, is we’re going to downsize eventually, but while we are still capable of offering V6, get it while you can,” he said.
The V6 is found in three Canadian models, the base Preferred Trend, starting at $53,699, the XRT Pro at $57,799 and the Ultimate Calligraphy at $62,499. The gas-powered Palisades are available now, and, like the hybrids, are being made in Korea. Hyundai expects the Ultimate Calligraphy models will make up the lion’s share of sales, following on the 60 to 70 per cent share it had with the previous generation.
All of them are remarkably well-equipped for the money. All-wheel drive is standard across the lineup, along with wireless Apple CarPlay and Android Auto, dual 12.3-inch screens and 100-watt capable USB charging ports in every row. But moving up to the Ultimate Calligraphy gives you so much more, with massage seating in the first and second rows, power-adjustable third-row seating, head-up display, third-row heated seats, the ability to control the third row from the driver’s seat and more. There’s also a factory-installed tow hitch for the first time.
New and notable here is the Hyundai-first integrated dash camera that records both forward and rearward while the vehicle is rolling or stopped, depending on your preferences. It’s a standalone system that records to a chip in the glovebox, but cannot be accessed through the app, so your trip data is not uploaded anywhere unless you specifically share it.
The care and detail that have gone into the planning and presentation of this vehicle are evident as soon as you see it. It’s packed with useful features and exudes confident good looks, both of which punch above the price point. Hyundai has got a likely winner with the 2026 Palisade.