2026 Hyundai Palisade review: Quick drive

The 2026 Hyundai Palisade is the biggest reminder yet that this Korean brand is in a real golden period. Once a bastion of cheap and cheerful, Hyundai’s model range is increasingly aspirational and sophisticated.

Following on from the fully electric Ioniq 9, what we have in the Hyundai Palisade is a petrol-hybrid large SUV that puts emphasis on the ‘large’ bit. With this review, we received our first taste of what to expect later in the year when the Palisade launches, during a short drive opportunity.

Sitting above the Santa Fe for size, price and specification, this new Hyundai Palisade drops diesel power but picks up a new petrol-hybrid powertrain that combines two electric motors in the six-speed transmission, and a turbocharged 2.5-litre petrol engine for primary motivation.

Compared to the Santa Fe – another three-row family SUV from Hyundai with hybrid power available – the Palisade is a larger beast in every dimension. 

It’s also a bit bigger than the previous generation Palisade for length and wheelbase. And, the previous model was already quite a buxom beast.

While we haven’t had the chance to do a full-fat rundown of this new-generation model, we were able to get an intriguing first taste of what to expect. Let’s dig in.

While Hyundai is yet to release full pricing of this new eight-seat SUV, we can expect first examples of this vehicle to arrive with a price that starts around the $90,000 mark.

That's a high price, no doubt. We are seeing a significant jump in price from the previous-generation model. This gap is wider because we are getting the most expensive variant initially in Australia, the Palisade Calligraphy, with the all-wheel drive and turbocharged hybrid powertrain.

The petrol engine is similar to the motor that you get in a Santa Fe or Sonata N Line: 2.5 litres and four cylinders of turbocharged petrol power, mounted transversely, but with reduced outputs in this hybrid application. But, when you look at combined power and torque output, numbers are quite solid: 245kW and 460Nm, which is better in both regards compared to both powertrain options in the outgoing Palisade model.

Claimed fuel consumption stays low, with a figure of 6.8 litres per 100 kilometres indicated by Hyundai. However, our first short drive experience wasn't able to get close to this on a closed circuit away from public roads. Stay tuned on this front, as we put the Palisade to a more thorough test in real-world conditions.

On the electric side of the hybrid equation, you've got a six-speed torque converter automatic transmission that includes two electric motors. One is focused on forward motivation, while the main job of the other aims to recuperate as much energy back into the 1.65kWh, 300-volt battery when coasting and braking.

In terms of standard equipment, the 2026 Hyundai Palisade Calligraphy goes big. But beyond just being an exercise in bells and whistles there is some evocative and interesting design going on inside.

There's nappa leather on the seats and suede on the ceiling for a start, and 16 directions of electric adjustment for the driver. The front passenger gets by with only eight, but both have heating and ventilation. The second row gets heating and ventilation for outboard seats, and even the often forgotten third row gets heated seats in this trim level.

Buyers can choose between an eight-seat or seven-seat layout, which adjusts the second row from being either a full three-seat bench, or two separate captain's chairs. While the latter does give up capacity, it does allow walk-through access between the seats into the three-seat third row.

Both the second and third rows feature electric adjustment and deployment, with a sliding second row joined by a sliding third row. That's not something you see often, and it will help with the overall versatility of the big interior space.

Unfortunately, we were too time constrained to really explore the flexibility of the second and third rows of this family bus. But rest assured, it's something we will really dig into when we get our next opportunity.

The interior of this new Palisade is unsurprisingly a massive step forward. It’s a world apart from the previous-generation model, which now feels hopelessly dated, but importantly, it’s not a similar derivative to what you get in the Santa Fe. There is a clear separation between the two models, evident not only in the materials and standard kit, but also in the design.

It’s modern and suave, with a throwback modernist edge to the curves and depth of the dashboard design.

However, there’s still plenty of excellent practicality for proper everyday family usage. Moving the gear shifter from the central area to a twisting wand off the steering column frees up space, with a nice floating console that gives you cup holders, wireless charging and a big open space further forward.

The lidded centre storage bin isn’t so deep, but for good reason: There is a handy storage drawer beneath that serves the second row.

The second row of the Palisade is quite spacious in the Calligraphy model that we had on test, and especially airy with the captain’s chair arrangement. There are all of the things you would expect here, like USB power outlets, air vents and roof-mounted climate controls.

You can opt for a full three-seat bench if you want a Kia Carnival-matching eight-seat capacity, but the seven-seat layout does give you walk-through access to the third row.

And with heating, electric slide and tilt adjustment in the rearmost seats – along with other features like air vents, cup holders and power outlets, there is a high level of standard equipment to help justify the high asking price.

The trick with the new Palisade is its obvious ability to apportion space as needed. Slide the third row back to maximise passenger room, or bring it forward to gain more storage. 

The combination of twin 12.3-inch displays for the infotainment and driver’s cluster is a familiar one, but it also feels a little more salubrious as it's ensconced in a leathery and wood-veneered dashboard.

One thing I really like in the Palisade is the obvious decision to keep some physical buttons and dial arrays, and to avoid the all-consuming trend of building as much functionality into the screens as possible.

Real-world usability falls victim here too often, and the inclusion of separate climate controls (even if some of the buttons are part of a screen-like panel) just simply works in this case.

As you would expect, though, there is Apple CarPlay and Android Auto, as well as wireless charging, a head-up display, 14 Bose-branded speakers and a digital rear-view mirror.

While stablemate Kia has recently had more frequent and notable success from developing an Australian-based suspension and steering tune for local vehicles, Hyundai has done something similar here for the Palisade.

The car we had in this case was a pre-production model, but one that was brought up to a representative level to directly show what we can expect from fully-fledged production models.

The suspension – which includes a passive, mechanical style self-levelling rear damper – is independent all-round, tuned for nice ride comfort on our initial driving experience.

It was a short drive on a closed course, so we won't give a full verdict in the car until we get a bit more time with it.

You can certainly feel the size and weight of the vehicle in comparison to something like a Santa Fe. It feels like a full-size up, and perhaps a little closer to something like a Nissan Patrol or Toyota LandCruiser than you might expect. After all, this is a large vehicle.

We don't know the weight of the vehicle as yet, but I'm not expecting it to be a lightweight.

The powertrain, which is used for the first time in this Palisade, feels quite good overall. It's similar to what you get in a smaller Hyundai hybrid overall, with initial electric-only acceleration joined by petrol-free coasting and braking.

Once both power sources are online, the six-speed transmission blends them together in a seamless fashion for the driver. There's no hapless surging or imbalance through the throttle, and outright straight-line acceleration feels plentiful enough to satisfy expectations.

It's smooth and easy, although the relatively large 2.5-litre engine does generate a little bit of noise when it leans into some heavier work.

For those who want seven or eight seats of space, comfort and versatility, something like a Kia Carnival people move is hard to beat.

However, not everyone wants to go all out mum-bus, and the Palisade offers an SUV that doesn't skimp on standard equipment, justifying the asking price.

Moving away from diesel power would put some buyers on notice, who prefer the torque and efficiency of compression ignition. However, the new Palisade's hybrid powertrain impresses on this first short taste, and has the potential to at least match what it replaces for both grunt and efficiency.

Of course, you've got an interior in this new Palisade that delivers on design, features, comfort and space. That is the main reason you're buying an SUV of this size and price. On that front, it undoubtedly delivers.

Sam Purcell has been writing about cars, four-wheel driving and camping since 2013, and obsessed with anything that goes brum-brum longer than he can remember. Sam joined the team at CarAdvice/Drive as the off-road Editor in 2018, after cutting his teeth at Unsealed 4X4 and Pat Callinan’s 4X4 Adventures. Off-road writer of the Year, Winner - Sam Purcell

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