Tested: 2026 Hyundai Palisade Is Way Better as a Hybrid

• The Palisade Hybrid uses a 2.5-liter turbocharged four-cylinder engine and two electric motors.
• The hybrid's 329 horsepower and 339 lb-ft of torque are an increase of 42 hp and 79 lb-ft over the V6 engine.
• The Palisade Hybrid is otherwise nearly identical to the non-hybrid — and that's a good thing.

What's the motivation?

We brought a V6-powered Palisade to our test track back in August and confirmed our real-world suspicions that the Palisade's underpowered 3.5-liter V6 engine is its weakest link. But instead of going bigger, Hyundai downsized and hybridized.

Under the Palisade's wide, mostly flat hood sits a 2.5-liter turbocharged four-cylinder engine paired with two electric motors that draw energy from a 1.7-kWh battery pack. The first motor is essentially the starter-generator (responsible for firing up the turbocharged four-cylinder engine), while the second motor is the drive motor. The drive motor is not powerful enough to accelerate the Palisade Hybrid past parking lot speeds, but it does produce enough power to briefly maintain hybrid speeds while the gasoline engine is shut off. All in, the Palisade Hybrid makes 329 horsepower and 339 lb-ft of torque. That's an impressive increase of 42 hp and 79 lb-ft over the V6 engine.   

Despite the addition of the hybrid components, the Palisade Hybrid weighs only 122 pounds more (5,032 pounds vs. 4,910 pounds) than the Palisade we tested earlier this year. We chalk that up to the lighter weight of the four-cylinder engine and the six-speed transmission on the hybrid, in place of the eight-speed unit on the standard Palisade. Incidentally, both of the Palisades we tested were the top-of-the-line Calligraphy trim.

Disappointment be gone

The Hybrid's ability to knock a whole 1.4 seconds off the Palisade's 0-60 mph time is impressive enough. However, the added power pays dividends at higher speeds as well. The Hybrid used its power advantage through the quarter-mile run, crossing the line not only a full second sooner than the standard Palisade but while going over 7 mph faster, too. I get that a three-row SUV isn't likely to see full throttle on a daily basis, but when you need to make a pass, merge or simply haul around your family, the Hybrid's extra juice will be very much appreciated.

During instrumented testing, I noticed that the Palisade Hybrid was never in a particular hurry to roll away from a dead stop. Initially, the Hybrid accelerates on electric power before the gasoline engine is switched on, but once the turbocharged four-cylinder is up and running, the Hybrid accelerates with more than adequate pace for an SUV of its size. The electric part of the powertrain helps fill in the low and midrange part of the powerband, so the Hybrid never feels like it's without decent power.

However, I also had the opportunity to drive the Palisade Hybrid a couple of hundred miles through the rolling hills outside of Austin, Texas. The Hybrid's smooth, linear power and accessible torque flattened out many of the small hills without requiring a downshift from the transmission. And when one was required, the six-speed automatic quickly dropped a single gear, unlocking enough power to glide up and over the next crest. I applaud Hyundai for using a six-speed transmission, as its well-sorted gearing means that it never drops more than two gears or hunts around for the best gear while cruising. Transmissions with eight, nine or 10 speeds can shift too often, making the vehicle feel both restless and underpowered as it can seem like it's never in the right gear. 

The Palisade's hybrid system is also nearly seamless in its operation, especially at higher speeds. On country roads with speed limits ranging from 50 mph to 70 mph, the Palisade Hybrid's turbocharged four-cylinder would be quietly switched off and the electric drive motor would take over, sometimes for a few seconds on flat ground and sometimes for much longer while descending a grade. The electric handoff was so subtle that I had to watch the tachometer to see when it read 0 rpm and when it read a normal engine speed. While a few seconds of electric-only propulsion doesn't seem like it would save a lot of gas, its sneaky and almost constant operation adds up to some serious fuel savings when compared to its V6 counterpart.

In its most fuel-efficient form, the Palisade Hybrid delivers an EPA-estimated 34 mpg, which, when combined with its 18-gallon fuel tank, promises a cruising range of over 600 miles. Even when equipped with all-wheel drive and the large 21-inch wheels, the Hybrid is still rated to return 29 mpg combined. For comparison, the best a V6-powered Palisade can do, according to the EPA, is 21 mpg — and that's for the front-wheel-drive model on the smallest wheels and tires.

Braking and handling are essentially unchanged

With only a relatively minor increase in weight, it's no surprise that the Palisade Hybrid turns and stops much like its V6-powered sibling. The variations in braking distance and skidpad numbers are due to the added weight of the hybrid system and minor differences in surface conditions. The Palisade Hybrid felt stable and predictable during our panic braking test and managed to display a bit of playfulness around our skidpad.

Skidpad testing measures lateral grip (how well a vehicle can hold on to a turn), but it also gives us a chance to see how it responds to minor changes in steering and throttle input. The Palisade Hybrid exhibits good traits for an SUV of this size; it has light yet accurate steering, doesn't lean excessively when cornering, and features smartly calibrated stability and traction control systems. I could push the Palisade Hybrid past the limits of its tires without feeling reckless, and only when I started to notice the hint of a slide would the stability system intervene. When it did, it wasn't aggressive and simply slowed the Palisade down just enough to help me get it back on line.

In the real world, this means you don't have to slow excessively to navigate freeway ramps or worry about taking a scenic road with a lot of twists and turns. Back to my time behind the wheel outside of Austin, the Palisade Hybrid was easy to drive and never felt as big as it really is. Thanks to its hybrid system, minor adjustments to speed when going through a turn are made largely by the regenerative braking. This allowed me to keep the Palisade Hybrid centered in the lane, even on long, sweeping curves. On back roads where the speed limits were routinely above 55 mph, having that stability and confidence made the drive on these unfamiliar roads much less stressful.

Of course, it costs more

As you'd expect for a more powerful and fuel-efficient version of the Hyundai Palisade, the price goes up. The Hybrid's price premium, regardless of trim level, is $2,220 over the V6-powered version. If you'd like to add all-wheel drive to the Hybrid, tack on another $2,000. Every trim has all-wheel drive as an option, so if you want all the bells and whistles, you can still opt for the Caligraphy trim and stick with front-wheel drive. If you were thinking about getting the more rugged-looking XRT Pro trim level as a hybrid, you're out of luck. The Hybrid is only offered in SEL, SEL Premium, Limited and Calligraphy trims. The entry-level SE, SEL Convenience and XRT Pro trims are only available with the V6 engine in the Palisade.

Even with the extra cost of the hybrid powertrain, everyone on our staff who drove the Palisade Hybrid would wholeheartedly recommend the Hybrid over the V6 engine. It's more powerful, way more satisfying to drive, and, on top of that, gets such superior fuel mileage that you could make up the difference in sticker price in fuel savings in just a few years. It's not like the Palisade needed much, but the additional power, performance and efficiency of the hybrid powertrain make this SUV very difficult to fault.