First Drive: 2026 Hyundai Palisade

A luxury three-row SUV without the price tag you’d expect

October 1, 2025

Roberto Baldwin

Hyundai's updated Palisade gets a design makeover. (Hyundai)

Years ago, Hyundai hosted a Palisade drive program for journalists consisted mostly of driving on a gravel road for a few hours. It was weird, and many a journalist told them so. Probably not as a direct reaction to that feedback, but on a recent drive program of the new 2026 Palisade, Hyundai made sure that we drove the well-equipped SUV on regular, albeit twisty roads in the Napa region of Northern California. The automaker also took us off-road again. This time, with boulders.

An interior that's nicer than its price tag. (Hyundai)

Hyundai's Palisade has long found itself in the shadow of Kia's Telluride. Built on the same platform, design-wise, the Kia always tended to turn more heads. With the 2026 upgrade, the Palisade is coming into its own looks-wise, while being outfitted with upgrades that keep the SUV punching above its weight class.

Road Tripping

The Hyundai Palisade is powered by a 3.6-L V6 that produces 287 hp (214 kW) and 260 lb-ft (353 Nm). It's an adequate powerplant for a vehicle this size. It's not overly quick and doesn’t feel sluggish while merging onto the highway. Most of the drive was on the winding backroads of Northern California. Braking felt more than capable during downhill portions of the drive, and accelerating out of corners was smooth without having to shove the accelerator to the floor.

Steering can feel a bit detached with just a little too much play. Jumping into sport mode does tighten up the steering a bit, but its unlikely the average Palisade owner will notice or care. The bit of wiggle room creates a sense of smooth control and doesn't deter from Hyundai’s ultimate goal, which is to make this vehicle feel more expensive than its starting sticker price of $38,935 (destination fee: $1,495). To wit: in Napa, Hyundai has us drive the AWD, top-of-the-line Caligraphy model with a starting price of $56,060 (destination fee: $1,495).

The XRT Pro is more capable than is really needed. (Hyundai)

All gas-powered trim levels are paired with an 8-speed Shifttronic automatic transmission paired with a two-chamber torque converter. A welcome addition to any vehicle in an industry that increasingly uses CVTs. And everything comes together with a suspension that reduces some of road bumps typical for a hilly region to tiny blips that are barely noticeable while driving or riding. We found the Palisade to be a delightful driving experience ready for road trips across the state or just across town.

It’s the inside that counts

The exterior design of the Palisade is an important upgrade, allowing the vehicle to exude more character and help it break from the growing pack of mid-sized three-row SUVs. But given how much time you spend in a vehicle, it’s worth noting how Hyundai has thrown a ton of tiny upgrades to the interior that result in a comfortable, dare I say luxurious, experience. All the materials felt like they were made of higher-quality materials than are commonly found in a SUV under $60,000.

Hyundai's XRT Pro wil bring additional comfort to those looking for off-road capabilities. (Hyundai)

The seats were supportive while cozy enough for a multi-hour road trip. Depending on the trim level, both the first and second rows offer one-button "relaxation" setting that moves the seat all the way back and reclines it. More importantly, the second and third rows can be adjusted forward and back offering up a mix of seating for passengers of various heights. For those of us over six-feet tall, comfortable third rows in mid-sized SUVs seem more a marketing myth than a reality. While sitting all the way in the back for hours on end would be uncomfortable, if seated behind a shorter person, the third-row is fine for a jaunt across town. What's impressive is that all three rows can be outfitted with heated seats. No longer will anyone feel left without a warm backside during the cold winter months. For those hauling more than humans, the cargo room behind the third row is 19.1 ft3. Fold down that row and it increases to 46.3 ft3. Finally, with the second and third rows folded down, the space jumps to 86.7 ft3

The dashboard has been outfitted with what Hyundai calls "intuitive" controls for the climate and media controls. In truth, Hyundai just put some buttons and knobs back in the car, but this is a welcome return to physical controls.

The infotainment system didn't display any noticeable latency. Hyundai errs on the side of not going too overboard with its infotainment system, a strategy that works in their favor. The system is easy to use without having to figure out anything new. Google Places has been integrated for more detailed information about a location.

One bonus that's sure to make your insurance carrier happy is the addition of front- and rear-facing dash cams. The native cam saves data to an SD that's stored in the glove compartment. The footage from the day's drive was clear and crisp with details about the date, speed, brake and turn signal usage.

Off the beaten path

In the middle of the drive, Hyundai had us step out of the Caligraphy-trim Palisades and into the XRT Pro, which starts at $49,370 (destination fee: $1,495). The automaker set up an off-road course along a dirt trail that was awkwardly narrow and far more complex than, really, any Palisade driver will encounter.

The XRT handily conquered soft dirt uphill climb, traversed over moguls, and slowly crawled over an area of small boulders (about the size of basketballs). Again, it's extremely unlikely anyone is going to do this level of offroading. Those buying the XRT just want the confidence that if get stuck in a snowstorm, on a muddy trail, or have to climb up a slightly technical dirt road, they can.

Up next, a battery

The 2026 Palisade throws a barrage of small updates to create a vehicle that should be cross-shopped with luxury mid-sized three-row SUVs. If the combined 20 or 21 mpg (FWD and AWD, respectively) fuel economy ratings seems like a deal-breaker, a hybrid version will be available this fall. It'll likely be a bit quicker off the line while saving money at the pump. We'll know more once we get some time behind the wheel.

Until then, the 2026 Palisade is an exceptional upgrade to an already impressive vehicle that can haul all of your friends in style. Unless they're all basketball players.