2026 Jeep Cherokee Hybrid First Drive Review: Better Than Expected But Too Expensive

• After a brief hiatus, an all-new Jeep Cherokee is here for 2026.
• The new Cherokee comes standard with a turbocharged hybrid engine and all-wheel drive.
• Prices for the 2026 Cherokee start at $36,995. 

Hybrid power only

The Cherokee wears an exterior design that's distinctly Jeep without looking like a scaled-down Wrangler or Wagoneer. Jeep played it safe with this redesign, perhaps still recalling the somewhat divisive reception of the 2014 Cherokee when it debuted. 

The new Cherokee has grown in size compared to the last model. Overall length has increased by 4.7 inches, and the wheelbase has grown by 6.4 inches. That means more passenger and cargo space. The new Cherokee is longer than its competitors, with an overall length that exceeds those of the RAV4, CR-V and Forester.

That extra length shows its benefits inside the Cherokee. There's more passenger space than in other compact crossovers like the RAV4 or Honda CR-V, especially for rear passengers. The interior feels very similar to the larger Grand Cherokee, though that's a good thing in the Cherokee's case. It's not quite as nice inside, but the design is handsome and looks more premium than most crossovers in its class.

The Cherokee's offers 33.6 cubic feet of cargo space behind the rear seats and up to 68.3 cubic feet with the rear seats folded flat. That's reasonable, and the space is quite usable, but most rivals offer a bit more overall room. But while the Cherokee's cargo capacity is lower than its rivals, towing capacity isn't. At 3,500 pounds across the board, the Cherokee can tow more than all but the most well-equipped rivals. 

My Cherokee Limited test vehicle features simulated-leather upholstery that is surprisingly soft, and the heated seats heated up quickly on a cool, rainy day. There's a 12.3-inch touchscreen infotainment system that features Apple CarPlay and Android Auto integration. Both systems are wireless, though USB-C ports are available for charging or connectivity. 

The biggest news with the redesigned Cherokee is the move to a hybrid-only powertrain lineup. The new Cherokee's only engine is a 1.6-liter turbocharged hybrid inline-four that makes 210 horsepower and 230 lb-ft of torque, at least on premium fuel. While it can run on regular, Jeep says the power figures were achieved with premium. The new powertrain is paired with an electronically controlled continuously variable transmission, or ECVT. All-wheel drive is standard, too, unlike rivals like the CR-V or RAV4 that offer front-wheel-drive options.

While the new hybrid powertrain doesn't make as much power as the old Cherokee, it offers much-improved fuel economy. Jeep says the new Cherokee has an EPA-estimated combined fuel economy rating of 37 mpg (39 city, 35 highway) across all trims. That's not quite as good as the Toyota RAV4 (which also features a standard hybrid powertrain), but it's better than any non-hybrid competition. 

Suburban explorer

Notably, this is not the same hybrid powertrain that burned us when we owned a Jeep Grand Cherokee 4xe. That vehicle was a headache over its 18 months in the Edmunds garage, ending up on the back of a flatbed tow truck three times during that period. Even when it was working, the Grand Cherokee 4xe's logbook noted complaints about the powertrain, specifically the poor transition from gas to electric power. 

I'm happy to report that this new engine is off to a good start. Because it's not a plug-in hybrid like the Grand Cherokee 4xe, it can't run on electricity beyond parking lot speeds. That's for the best. The Grand Cherokee 4xe's issues were related to the electric portion of the powertrain and to its poor integration with the gas engine. The Cherokee's hybrid powertrain is much smoother, and while this isn't a particularly quick SUV, the new Cherokee doesn't feel slower than rivals in the real world. 

It's not sporty or particularly fun, but the Cherokee is easy to drive on the street. My route through the Santa Monica mountains is one I'm very familiar with, featuring lots of grades and curves. The light steering offers no feedback from the tires, but it's easy to drive the Cherokee through all the back-and-forth bends. The suspension is compliant but firm enough to keep body roll in check. 

While the Cherokee comes standard with all-wheel drive, it is not a four-wheel-drive system with a selectable low range or transfer case. The rear axle can disconnect automatically in certain situations for improved fuel economy, but that's it. While there's currently no Trailhawk model in the lineup, I would expect to see a new one soon to compete against models like the RAV4 Woodland, CR-V Trailsport and Forester Wilderness.

Sticker shock

The Cherokee's biggest drawback is its relatively high starting price. While it offers more standard features than its rivals, especially given the hybrid powertrain and all-wheel drive, Jeep charges for it. Prices for the 2026 Cherokee start at $36,995, several thousand more than nearly all of the competition. The top-level Overland trim starts at $44,995. My test vehicle is a midlevel Cherokee Limited, and with options, it packs an as-tested price of $45,180. 

The new Cherokee offers many features, but even with the hybrid system and all-wheel drive, it doesn't offer as much value as other small crossovers. It's comfortable, spacious and returns decent fuel economy, but the new Cherokee doesn't do a ton to stand out in a crowded field.