Quicker and Much More Fuel Efficient for Just $2K: 2026 Hyundai Palisade Hybrid Review

Once I come to a complete stop on a barren straight patch of Texas highway, the engine automatically shuts off. Undeterred, I hold the brake with my left foot and bury the accelerator with my right foot. Nothing happens. That is, until I lift my left foot from the brake.

In the blink of an eye, the engine kicks on and the electric motor launches the Palisade off the line. Soon enough, the turbo four-cylinder reaches its horsepower peak, and the nearly 200-inch-long, three-row crossover hustles its way toward triple-digit speeds in short order.

Clearly, traditional methods of accelerating a vehicle do not apply to the Palisade hybrid. But, equally clearly, the new-generation Palisade hybrid doesn’t need them.

A few months ago, the second-generation, 2026 Palisade arrived with a 3.5L V6 under its hood. Now, Hyundai adds a turbocharged 2.5L hybrid to the mix. It brings more power, torque, and fuel efficiency to the table. It also brings more cost and curb weight.

Intrigued, I flew to Austin and bombed around central Texas to see how four cylinders and a bit of electricity compare to a naturally aspirated V6 to haul this 2.5-ton machine around. How well does a small hybrid powertrain work in something this big? Time to find out.

In short: Plan to pay an additional two grand or so for the equivalent Palisade with hybrid propulsion. Also, plan to pay yourself back in a few years’ time in the form of savings at the pump. Whereas the V6 engine Palisade peaks at 21 mpg combined, the least efficient hybrid manages 29 mpg. You also get a noticeably quicker vehicle. And, one that otherwise operates smoothly and quietly. Move over, Toyota Grand Highlander, there’s another hybrid in town.

2026 Hyundai Palisade Hybrid Review

Same New Palisade

Hyundai changed nothing other than the powertrain; this is the same, bigger platform, to the 10th of an inch as the non-hybrid, second-generation crossover. Compared to the outgoing Palisade, you get a 2.5-inch–longer body, which also stretches a few 10ths of an inch higher and wider. The wheelbase spans an additional 2.7 inches.

Hyundai used that additional footprint to largely increase passenger space. Though, the hybrid battery pack hinders that slightly compared to the V6. You get 178.7 cubic feet of space, compared to 181 offered in the V6.

And the passengers lose all the space, down to 159.6 cubic feet from 161.9. Thankfully, it’s still a lot. And I didn’t feel a tangible difference during my test sits in each row.

As a result, the Hybrid maintains the same levels of cargo space. On offer is 19.1 cubic feet behind the third row, fold it to increase that to 46.3 cubic feet. Need more? Folding the second row nearly doubles it to 86.7. Plenty of space for most families in most scenarios. But, not as much as the Toyota Grand Highlander, which also offers hybrid powertrains.

Utilizing Electricity Effortlessly

Hyundai debuts its second-generation hybrid system in the second-generation Palisade. At first glance, it appears that Hyundai took a close look at Toyota’s Hybrid Max powertrain seen in the Crown and Grand Highlander and replicated. After all, it starts with a turbocharged inline-four-cylinder engine, makes use of two electric motors, and retains the use of a torque converter automatic transmission.

Upon closer inspection, however, the Korean brand definitely carved its own path and built a clever, unique system. The bulk of the power stems from a turbocharged, and its 2.5L I-4, 258 horsepower and 260 pound-feet of torque come from that source. The engine is paired with a six-speed automatic transmission.

However, two electric motors reside within the case of that gearbox. One attaches directly to the engine. It makes 17 horsepower and 72 pound-feet of torque and has a name: P1. P1 replaces the alternator and effectively functions as a mild hybrid system. It is specifically used to quickly start the engine and help it along at low speeds.

A second, more powerful motor, P2, makes 72 horsepower and 195 pound-feet of torque. It attaches directly to the output shaft of the transmission and can drive the Palisade completely on its own, all the way to and including interstate speeds. P2 consumes power fed from the 1.6 kWh, lithium-ion battery pack.

Altogether, the system produces a healthy 329 horsepower and 339 pound-feet of torque. Or 42 more horsepower and a healthy 79 additional pound-feet of torque over the 3.5L V-6 mounted in the non-hybrid Palisade.

Traditional Drivetrain

Hyundai will sell four different trims of Palisade hybrid: SEL, SEL Premium, Limited, and Calligraphy. All four come standard with front-wheel drive.

With an additional $2,000 out of your pocket, Hyundai will equip all four trims with all-wheel drive. Named HTRAC, this purely mechanical system leaves the hybrid system untouched. It also leaves the system unaffected, save for fuel efficiency.

The (relatively) lightweight, front-wheel-drive SEL and SEL Premium Hybrids deliver the best fuel efficiency, traveling 33 miles on a gallon of gas in the city, 35 miles on the highway, and 34 combined. Limited and Calligraphy trims keep it in the 30s, delivering 31 mpg in the city, 32 on the highway, and 31 combined. Going all-wheel drive drops those figures to 29 mpg in the city, 30 on the highway, and 29 combined.

My AWD Calligraphy test crossover weighs a smidge over 5,000 pounds and managed a bit better than 26 mpg on my drive, according to the trip computer. Under the EPA combined mpg number, but commendable considering my heavy right foot.

In a hurry? The added torque and general electric help make the Palisade Hybrid noticeably quicker than the V6 version. Stomp the throttle and after the transmission kicks down, you feel a stout pull. With all-wheel traction, even full throttle from rest results in no wheel slip. Rather, the Hybrid shoves you back into the Nappa leather seat and gets moving with gusto.

In the city, highway, and even the interstate, I felt passing power to spare and weaved through slower traffic stress-free.

Pulling Its Weight

Just like any crossover this size, yes, the Palisade hybrid can tow — up to 4,000 pounds according to Hyundai. That’s 1,000 fewer pounds than the V6 version, despite having the same chassis and a fair bit more horsepower.

I asked why, and engineers at Hyundai said the available cooling capacity of all the hybrid components forced them to limit its towing capacity. They then added that it’s only a matter of time to sort that issue. Time will tell.

Interior Tricks

Again, just like the non-hybrid, Hyundai adorned the Palisade with a curved display using two 12.3-inch screens — one for the digital instrument cluster, the other for the center display. The latter includes wireless Apple CarPlay and Android Auto, but also several wireless pay options, including Phillips 66, Conoco, and 76 gas stations.

You also get a standard wireless smartphone charger for good measure.

Use a wire instead and six USB-C charge ports offer 100 W of charging power throughout the cabin, two for each row of seating. That, along with several cupholders, come standard in the Palisade. But, you need to get a Limited or Calligraphy trim to get the heated first-, second-, and third-row seats. The first and second rows also ventilate in that case. You get a heated steering wheel as well.

But only the top Calligraphy trim gets Nappa leather–upholstered seats. And both the first and second row of those seats will contort themselves into a relaxation mode, the seat bottom up and the seat back down and, in the first row, raising thigh support. giving folks a nice power nap lounging position. And feel free to keep the climate control on.

Hyundai developed something called hybrid stay mode. If you park the Palisade with an 80% charge, you can use the audio system, charging, and climate control system for up to 40 minutes without ever turning on the engine. It’s a handy and guilt-free way to stay comfortable while waiting in the car. When the battery depletes enough, the engine simply kicks on and keeps everything powered up.

Calligraphy trims also benefit from a built-in front and rear dash cam system to give you video evidence of any wrongdoing happening around your car. Nice!

Motoring Along

When on the road, the Palisade hybrid largely feels just like the non-hybrid. No surprise, it uses the same front and rear suspension geometry. You also get standard rear self-leveling suspension, to keep an even keel even when loaded up with people and stuff. Though, in actuality, the hybrid rides slightly better.

Where the standard Palisade rolled quite a bit into corners, the hybrid feels a bit more composed. I suspect the added weight of the battery pack compelled the engineers to firm up the suspension slightly. It still heavily prioritizes ride over handling here.

Indeed, I still find it softer than ideal and prefer how Honda tuned the Pilot as an example. But the hybrid goes in the right direction. I doubt the vast majority of shoppers will mind.

They will, however, appreciate the quiet ride. Hyundai isolated the Palisade’s cabin from both road and wind noise very well. Just like the V6 Palisade, the hybrid feels closer to a premium SUV than a mainstream one in terms of cabin quiet and comfort. The Palisade makes an excellent road trip car. Even the all-wheel-drive Calligraphy will travel over 500 miles on a single tank of fuel.

2026 Hyundai Palisade Hybrid Review: Summary

Base price for a front-wheel-drive Hyundai Palisade SEL hybrid starts at $45,760, or $2,220 more than the equivalent ICE power Palisade, which starts at $43,540. However, Hyundai sells a lower SE trim Palisade, which starts at $41,035.

You have to climb up the trim ladder a touch before the hybrid becomes available. My all-wheel-drive Calligraphy test vehicle just crested $60K — $60,625.

But, that includes all the relaxation seating, dashcam, Nappa leather comforts. Not to mention the sole option, $245 carpeted floor mats. For the money, you get — for all practical purposes — a premium, family-sized SUV that will deliver 30 mpg, as long as you keep a light right foot. And that offers its own kind of value argument. The Palisade costs every bit as much as the mainstream competition but offers a nearly premium experience, all while requiring a smaller fuel budget.

The Toyota Grand Highlander also offers hybrid options and quite a bit more cargo space. But the Palisade’s comforts, and its combination of technology and convenience, merit a close look if you’re in the market for a three-row crossover.