When Hyundai first offered a glimpse of the 2026 Palisade in December, it was for the South Korean market with the early images the company released doing little to answer some key questions we had about the model and some of the bold changes that lurked beneath the skin.
This is now changing with the company using the New York Auto Show to debut the 2026 Palisade in the U.S. with the SUV promising to shake up the segment while giving returning buyers more of everything as Hyundai sharpens its focus on the SUV market and even brings a few firsts to the Palisade too.
Palisade’s hybrid engine accompanies smaller V6
Performance for the 2026 model comes from two engines with the aging 3.8-liter V6 being replaced by a smaller 3.5-liter mill. The 287 horsepower on hand is a bit less than the 291 hp offered by the outgoing V6 but Hyundai says it can still tow up to 5,000 lbs and is available in front or all-wheel drive. In addition to the new base engine, the Palisade will also be getting a new hybrid powertrain for the first time ever with the smaller 2.5-liter four-cylinder being paired with two electric motors to produce a combined system output of 329 hp and 339 lb-ft of torque. Unlike the V6, this setup pitches the eight-speed automatic and instead embraces a six-speed auto. The hybrid is projected to get 30 mpg in freeway driving but towing capability goes down to 4,000 lbs.
The addition of the hybrid engine is long overdue and it finally gives Hyundai a presence in the hybrid SUV market which has experienced an impressive amount of growth in recent years while the Palisade stood by and watched from the sidelines. Hyundai is also hoping for stronger sales with the hybrid being a bridge for customers who might move to an all-electric Ioniq 9 after their time in the Palisade comes to an end.
Tech-filled interior steals the show
With the styling risks Hyundai took with the exterior, it can be easy to forget about the revamped interior which does a good job stealing the spotlight in its attempts to wow customers. Higher quality materials make it better than ever and dual 12.3-inch screens provide plenty of information. The screens are joined by a healthy number of analog buttons with wireless Apple CarPlay and Android Auto being standard with the 15-watt charging pad now featuring an integrated cooling fan to help keep the phone cool while charging with the lower temperatures also helping to boost charging capability.
The cabin also boasts higher amounts of passenger and cargo room with second-row passengers benefitting from more leg and headroom. The new cabin addresses some of the minor shortcomings we have seen in older Palisades and it will be interesting to see if the beefier tech will help lure in more young buyers who might otherwise consider a rival from Jeep or Honda.
When can I buy one?
Hyundai didn’t reveal final pricing for the 2026 Palisade but confirmed the V6 model will make its way to showrooms this summer with the hybrid version coming later in the fall. Buyers can choose from 10 different exterior colors and four different interior materials: cloth, leatherette, leather, and Nappa leather upholstery. Hyundai will also finally give the XRT model some bite to go with its styling upgrades in the form of the XRT Pro variant which adds mechanical enhancements for better trail capability.
Carl Malek has been an automotive journalist for over 10 years. First starting out as a freelance photographer before making the transition to writing during college, his work has appeared on numerous automotive forums as well as websites such as Autoshopper.com.
Carl is also a big fan of British vehicles with the bulk of his devotion going to the Morgan Motor Company as well as offerings from Lotus, MG, and Caterham. When he is not writing about automobiles, Carl enjoys spending time with his family and friends in the Metro Detroit area, as well as spending time with his adorable pets.