The 2026 Hyundai Palisade Hybrid Is One of the Best MPG 3-Row SUVs. But That’s Not Why We Love It
The redesign took a while to grow on me, but driving the new Hyundai Palisade Hybrid through the Hill Country of Austin, Texas, had me smitten.
Driving the 2026 Hyundai Palisade Hybrid through the Hill Country of Austin, Texas, was metaphorical for me. Before I flew out to Austin, I’d spent a few days in Houston (ironically with Hyundai and Genesis), and was very unimpressed with the fourth-largest city in the nation. Therefore, I had very low expectations for Austin. I remember thinking, “If it’s anything like Houston, I’m going to hate it.”
I was wrong. Very, very wrong. And that philosophy carried over to my feelings for the new Hyundai Palisade Hybrid. I wasn’t keen on the redesign. Looking at pictures, I thought it looked like something I’d draw as a kid in elementary school, of a car I thought I’d see in the future. Seeing it in person, however, completely changed everything for me–but I was worried about its size. I assumed it would be slow, sloppy, packed full of body lean, and feel like a school bus.
Again, I was wrong. As I was mesmerized by the rolling hills, trees, creeks, rivers, and lakes of Austin, I was piloting a full-sized SUV full of personality, damn good looks, respectable mileage, and an actually usable third-row–all for $58,780 at the top of the line with all-wheel drive ($56,780 with front-wheel drive). Which is not what I expected at all.
This story is 100% human-researched and written based on actual first-person knowledge, extensive experience, and expertise on the subject of cars and trucks. Additionally, I was Hyundai’s guest for this experience, but all opinions are my own.
The Hyundai Palisade Hybrid Has an All-New Engine and Transmission—And They Sure Do Deliver
The 2026 Hyundai Palisade didn’t just reappear with a new face; it also has an all-new hybrid engine and transmission that the engineers from South Korea were very excited to talk about. Instead of the 1.6-liter hybrid setup that’s in the Santa Fe, Tucson, Kia Sportage, Niro, and Carnival hybrids, the company developed an all-new 2.5-liter turbocharged four-cylinder engine with a new, more efficient six-speed automatic transmission.
Hyundai engineers and executives were careful to mention that not only does the new configuration make the heifer more efficient even with all-wheel drive, it’s also more responsive and peppy, too. With all-wheel drive, the new hybrid setup comes with “e-AWD” that includes torque vectoring, so the Palisade is more nimble and athletic when it’s confronted with corners. And not only is it capable of handling the corners, it’s fun.
So while your teens are duking it out in the second or third rows, you can tune it all out and enjoy the last few hours of the drive. If you’re like me, then you’ll be telling Google Maps to avoid highways to enjoy the rambunctious driving dynamic that comes with the new engine. And, Hyundai said loudly and clearly: the new engine will most definitely be put into existing hybrid models as well as upcoming models. More torque, more miles per gallon, and 329 horsepower? Sign me up.
I drove the Hyundai Palisade Hybrid Calligraphy with all-wheel drive, and through town, I averaged about 23 mpg. On the back roads and on the highway, I was averaging well over 28 mpg, close to the 29 MPG this SUV is expected to get. The front-wheel drive version is expected to get about 34 mpg. I will always personally vouch for all-wheel drive, even in places like Texas–but I certainly wouldn’t blame anyone if they went with front-wheel drive for the sake of mileage. Just be sure you buy the right tires for when the seasons change.
Related: The 2027 Kia Telluride Delivers Even More “Rover” Vibes and Off-Road Appeal
The Redesign Means More Space in the Third Row
We talked about this with the gas-only version of the Palisade, but as a refresher, the new design is longer and wider than the previous generation, which means more shoulder, head, and leg room in the third row. And that’s not just marketing jargon that was fed to us by the product managers–it’s actually true. On the way back to the hotel from dinner on drive day, I decided to test the third row for myself to get a better idea. I stand at close to 5’9”, and at first, I was a little packed in. I looked to my left under my large window and noticed that there was a button that allowed me to scoot it a few inches backwards.
But I needed just a bit more room to be comfortable. Jerry Hirsch from Automotive News was sitting in front of me, and I asked if he could scoot forward by just an inch, and with the touch of a button, he did, without sacrificing too much of his own comfort. With that adjustment, I was just as comfortable in the third row as I would be in the second row, with my own A/C vents, charging ports, and a place to put my elbows.
My favorite feature was the visibility, though. My window was large and tinted, as well as a sunroof over the second row, so any passenger who’s susceptible to car sickness would be plenty comfortable, even on long trips. I turned to look in the trunk, and there was plenty of room back there for a few suitcases, a stroller, or your weekly grocery haul. For anything more than that, you’d have to invest in a cargo box or basket. Or, if you get the hitch installed, you can get a hitch cargo carrier installed. Otherwise, riding in the back was comfortable (for once).
Read More: Change the Mood in Your Car With Ambient Light—and See What You’ve Been Missing
The New Interior and Exterior Design is Top-Notch
Like I said before, the new design took a bit of getting used to for me. I loved the design of the previous generation, the Calligraphy Night edition in particular, and the new design was a lot for me to take in. Seeing it in person clicked for me instantly–it’s a very premium look blended with a bit of futuristic optimism that blended so well with the interior layout, that I immediately fell in love.
The new interior was gorgeous, no matter the color. The Hyundai Palisade hybrid can come with a white leather interior or brown leather, and it looks gorgeous either way. Though in my experience with toddlers, white leather is less than ideal. With older kids or teens, it’d work just fine–but if you have little ones, trust me, go with anything but white.
In the front, I adored the wood paneling woven into the dashboard, the center console, and Hyundai’s trademark dual-screen setup. It took a while to figure out how to connect our phones to it, but once we did, switching back and forth from my phone to my drive partner’s (none other than MotorBiscuit’s Henry Cesari) was a breeze, even though I have an Android and he uses an ancient iPhone.
The Second Row is the Best Seat(s) in the House
The second row is luxurious and open–something I can always appreciate about a family-focused SUV. There’s about an acre of legroom for the two captain’s chairs, and if you want it, the second row can have integrated ottomans for longer drives. When you pair with the ventilation or heat back there, second row passengers can say they’re being chauffeured instead of dropped off at school.
Instead of having the kids fight over who gets to ride shotgun, you’ll have them fighting over who gets to be in the second row.
The Hyundai Palisade Hybrid Isn’t Cheap, But It’s Still A Bargain
The gas-only version is obviously more cost-effective as it starts at $39,435 to $56,560. Adding on the new hybrid system drives up the price range by quite a bit: $44,160 to $56,780 with front-wheel drive and $46,160 to $58,780 with all-wheel drive. So, it’s not the most affordable option, but when you consider how much the competition is, it’s right on the nose, with a more comfortable third row.
For instance, the Toyota Grand Highlander starts at $44,210 and maxes out at $58,775 (which gets even higher if you include pricing for the HybridMax system, which goes well over $60,000 MSRP). The Mazda CX-90 PHEV starts at $49,945 and goes up to $57,950. The Grand Highlander is remarkably efficient, but the third row isn’t as comfortable as the Palisade’s, in my opinion. Same story with the CX-90: it gets better mileage because it’s a PHEV, but it’s not nearly as comfortable in the third row. The Kia Sorento Hybrid is also a competitor, but barely. The prices are similar at $38,690 to $46,890, but the third row isn’t even comparable to the Palisade’s.
In short, there are other, more affordable 3-row hybrid SUVs to shop for, like the Hyundai Santa Fe or the Toyota Highlander hybrid, but it’s the same story: the third row doesn’t even hold a candle to the Palisade’s. So, if you’re in the market for a hybrid SUV with a third row that can accommodate the in-laws, the Palisade is your Gal(isade). And, there’s a trove of safety features, too, like forward collision-avoidance assist, lane following assist, safe exit assist for when you’re getting into an active lane from a parking spot, blind spot collision avoidance, and 10 airbags spanning from the front and rear–including curtain airbags.
This First Drive Reminded Me What It Means to Be Objective
I flew into Austin, Texas, full of assumptions. I assumed it would be flat, hot, humid, and unattractive. I assumed the Hyundai Palisade would drive like a boat on choppy water. I was wrong on both accounts: Austin was incredibly lovely, and I fell in love with the redesign and driving dynamic that came with the new hybrid system.
The Hyundai Palisade Hybrid reminded me how important it is not to ignore my first impressions, but not to let them bleed into my feelings about something. This was an important lesson for me as a driver and as a writer: when it comes to everything in this industry, there’s usually a lot more than what meets the eye.
More About:Car Reviews SUVs