Hyundai's bold 2026 Palisade SUV debuts at the New York Auto Show
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Hyundai to announce $20 billion US investment
Hyundai is making a major investment in the U.S. to the tune of $20 billion.
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Imagine your favorite whatever in a colorful new box that screams 'Now With X Percent More!' While we couldn't get an exact percentage out of Hyundai, that sums up the new 2026 Palisade SUV , revealed at the 2025 New York Auto Show: More space, more efficiency, more off-road ability, more luxury. It's inflation, but for once it's on the side of the consumer.
More room, more prestige
Can we call the 2026 Hyundai Palisade an all-new SUV? It rides an updated version of the current-gen Palisade's platform, but the wheelbase has been stretched 2.7 inches while overall length is up 2.5 inches. It's a smidge taller (0.6 inch) and a third of a smidge wider (0.2 inch). The front overhang has been reduced by 1.6 in, which means the proportions have been shifted slightly rearward.
If the new Palisade looks vaguely familiar, check out a picture of the current Range Rover. Viewed from the back, the bulge of the rear fender is distinctly Range Rover–esque, and Hyundai certainly wouldn't be the first manufacturer to mimic the uninterrupted window line from A- to D-pillar.
Of course, the vertical theme of the front end is a familiar Palisade cue, and Hyundai has delivered a nifty new interpretation: A stack of illuminated rectangles that form the daytime running lights. When the lights are off, the panels show painted silver, a very cool effect. The XRT Pro model we saw, more on which in a moment, uses a smoked lens, and it doesn't look anywhere near as nifty.
Will the Palisade be good for families?
Inside, Hyundai has gone to great lengths to up the posh factor. Our hands-on preview included the top-of-the-line Calligraphy model as well as the off-road-tuned XRT Pro, and while the lovely leather under our legs won't appear in all Palisade models, the soft, rounded shapes throughout the interior will.
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Kevin Kang, head of Hyundai's interior design department, told us the idea was to create a relaxing oasis for harried parents. The first thing we noticed as we clambered behind the wheel was the dearth of 90-degree angles. Kang pointed out the softly padded driver's armrest serves as a handle for its entire length, making it easy for any size driver, tall or short, to close the door.
Front-seaters face a beam-style dash with a brow that shades the digital instrument panel and center screen, both of which are 12.3-inch displays. As with the Hyundai Ioniq 5 electric SUV, the center console is separated from the dashboard, leaving space to store a bulky purse or backpack within the driver's reach.
Kang went out of his way to point out the curved top of the armrest between the front seats, as well. Hyundai didn't want a center console that looked like a picnic cooler, and many hours were devoted to getting that arc just right. Job well done, folks — it's not often we note how nice a front-seat console looks from the back seat, but in the Palisade, we actually did.
The second-row seats are as roomy as we expected, but one of our chief complaints about the outgoing Palisade was limited space in the third row. Hyundai's made a notable improvement here; this 5-foot, six-inch well-fed correspondent was able to sit in the third row in a reasonable amount of comfort, surrounded by USB ports, cupholders and ceiling-mounted air vents.
It helps that both the second and third rows motor back and forth, or at least they did in the Calligraphy model, although the motorized easy-exit feature took forever to move the second row out of our way. As with the outgoing Palisade, deploying the third-row seats leaves adequate cargo space for some gym bags or grocery sacks.
What MPG does the Palisade hybrid get?
The big news under the 2026 Palisade's hood is a new hybrid powertrain, which pairs a 2.5-liter turbocharged four-cylinder engine with a pair of electric motors mounted inside the six-speed automatic transmission. We await final numbers, but Hyundai's preliminary estimate is 329 horsepower — 262 from the engine and 67 from the motors — and 339 lb-ft of torque. It's too early for fuel-economy figures, but Hyundai is hoping the Palisade hybrid will exceed 30 mpg on the highway, giving it a 620-mile range.
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There will also be a V-6 option, and this is perhaps the one element of the Palisade that shrank: The 3.8-liter engine has been replaced by a newly developed 3.5 producing 287 hp and 260 lb-ft, down 5 hp and 2 lb-ft and driving an eight-speed automatic transmission. V-6 Palisades will tow up to 5,000 pounds, while the hybrid version will tow 4,000. Both powertrains will be offered with front- or all-wheel-drive.
Can the new Hyundai Palisade go off-road?
The outgoing Palisade offers an XRT trim level, which is an off-road appearance package; for 2026, that model will morph into the XRT Pro, which adds real usable functionality.
The XRT Pro styling cues really do make it look like a rugged machine, and functional upgrades include an extra inch of ground clearance, improved approach, breakover and departure angles, an electronic limited-slip differential for the rear axle, 18-inch wheels with all-terrain tires, extra terrain modes for the all-wheel-drive system, and hill descent control.
The bright orange tow hooks are solid metal and designed to be functional. They're even surrounded by rubber, so moving straps won't damage the plastic bumper.
As you'd expect, there's plenty of tech to go around in all Palisade models, including standard wireless Apple CarPlay and Android Auto, a 15-watt wireless charging pad with an integrated cooling fan, and an optional 14-speaker Bose stereo. A two-camera security system automatically activates for a variety of events ranging from panic stops to bumps and jars when the Palisade is parked. Recorded events can be played back on the center screen or retrieved from the system's (included) MicroSD card.
Most cars give you a reminder to check the back seat when you shut the car off, but those tend to fade into the background just like seatbelt reminder chimes. Should you happen to leave kids or pets behind in the Palisade, it can detect movement in the back seat and will honk the horn and send an alert to the Bluelink app on the owner's phone.
Speaking of Bluelink, the Palisade has a digital key function allowing it to be unlocked and started with a phone or smartwatch. Access can be shared with others, so you can loan out your Palisade without giving up your keys. Owners can even pay for parking or fuel using the no-touch Hyundai Pay app.
When will the new Hyundai Palisade go on sale?
Pricing for the 2026 Hyundai Palisade will be announced closer to launch and, with all those tariffs flying around, is likely to be a moving target. The 2025 Palisade starts at $37,200, with base prices rising as high as $54,500 for the all-wheel-drive Calligraphy Knight Edition, and we'd expect a bump in those prices. The V-6-powered 2026 Hyundai Palisade is scheduled to arrive at Hyundai dealers in the summer of 2025, with hybrids to follow in the fall.
2026 Hyundai Palisade Specifications BASE PRICE $38,000 LAYOUT Front-engine, FWD or AWD, 7- or 8-pass, 4-door SUV ENGINE 3.5L/287-hp (est)/260-lb-ft (est) DOHC 32-valve V-6 or 2.5L/262-hp (est) turbocharged DOHC 16-valve I-4 + 2x electric motor; 329 hp (est)/229 lb-ft (est) combined TRANSMISSION 8-sp auto (V-6), 6-sp auto (hybrid) CURB WEIGHT 4,800 lb (est) WHEELBASE 116.9 in (est) L x W x H 199.2 x 78.0 x 69.5-70.5 in (est) 0–60 MPH N/A EPA CITY/HWY/COMB FUEL ECON N/A EPA RANGE, COMB N/A ON SALE Summer 2025
Photos by William Walker
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