The Hyundai Palisade was released back in 2020 to much fanfare as Korea’s first true competitor in the three-row midsize sport utility segment. To say it was successful would be an understatement. Selling over one hundred thousand units each year across North America in such a competitive market was no easy task in an arena dominated by Japanese and American nameplates. Not one to sit on its laurels, this week’s all-new 2026 Hyundai Palisade Hybrid Calligraphy looks to improve its standing in the segment by addressing concerns surrounding its first-generation offering: performance and fuel efficiency.

Exterior style

The 2026 Hyundai Palisade sticks with a style that’s familiar, but much more modern, and cleaner. Personally, I prefer this design, and it stands out in a segment that is often very copy-and-paste. Hyundai has tried to bring something different to the table, and they have succeeded. The front headlights look like nothing else on the road; the stacked design is all Hyundai. The new horizontal light bar fits perfectly into the overall front-end design, and it’s less busy overall than the previous generation. The thickness of the C-pillar has been shifted to the D-pillar, allowing for a more open design that also offers improved blind-spot visibility for situations where you actually have to turn your head and look. The stacked lighting design carries through to the rear taillights for a more cohesive look. While our tester is a hybrid, the only exterior identifier is the subtle “Hybrid” badge on the rear tailgate.

Interior accomodation

With our tester being the 2026 Hyundai Palisade Hybrid Calligraphy, this represents the top-of-the-line model and trim. Jump from any of its competitors into our tester, and you’ll immediately see and feel a difference. The Palisade Calligraphy is as close to luxury-brand quality as you’ll find in a non-luxury vehicle. From the ultra-soft Nappa leather and suede-like headliner to the clean design and technology, it truly is impressive what Hyundai is able to offer at this price point.

Want to recline and fold flat the second and third row seats from the infotainment screen? The Palisade Hybrid allows you to do just that. Need USB-C 100-watt fast-charging ports? Hyundai gives you six. Worried about third-row occupants missing out on heated seats? All three rows offer heated seating on our Calligraphy tester, while the first two rows are also ventilated. The two-toned interior and steering wheel add to the sense of occasion.

There is ample storage up front, a wireless phone charger with a built-in cooling fan, wireless Apple CarPlay and Android Auto, and built-in navigation that is standard and does not need a subscription, like some competitors currently require. Adults up to six feet tall can sit quite comfortably in the first and second row seats. Shorter adults can fit in the third row for shorter periods, though children will get the most use out of it. Thankfully, both the second and third rows also offer reclining functionality. Cargo space behind the third row measures 540 litres. Drop the third row and capacity expands to 1,310 litres; fold the second row as well and total cargo volume jumps to 2,455 litres. Seats can be folded flat using buttons in the cargo area or via the infotainment screen up front.

Powertrain

The original Palisade’s 3.8-litre V6 was an average performer in terms of both fuel efficiency, focussing instead on trying to deliver a middle ground with good manners – the new Palisade now has two powertrain options. The first is a 3.5L V6 that actually produces a little less power than before, in trying to achieve better emissions and offer a simpler, lower-cost option.

The real highlight is the new hybrid powertrain that’s long overdue for the Palisade. The 2026 Hyundai Palisade Hybrid Calligraphy uses a turbocharged 2.5-litre four-cylinder engine paired with two electric motors, producing a combined 329 horsepower and 339 lb-ft of torque. Where the standard V6 takes around 8.8 seconds to go from 0–100 km/h, while the hybrid system drops that time to approximately 6.6 seconds. It’s quick, but still trails top-trim powertrains found in competitors like the Toyota Grand Highlander Hybrid or Mazda CX-90 PHEV.

The hybrid powertrain is noticeably more responsive than the old V6, though it does sound more gruff than some competitors, even with the dual-pane glass fitted to the first and second rows. As the engine warms up, it settles down to a more acceptable noise level. Power is delivered smoothly, and in Sport mode there is a noticeable increase in urgency. Fortunately, the chassis is well engineered. The platform feels solid and composed, almost Germanic in how it soaks up bumps and potholes. The standard AWD system kept our Palisade Hybrid confidently planted during slick weather, and the six-speed automatic transmission was barely perceptible in normal driving.

Fuel efficiency

Fuel economy was the second major weakness of the V6-powered Palisade. It was thirsty, especially when compared to its Japanese competitors. That issue has largely been addressed with the introduction of the hybrid model, which is only available on the two top trims: Luxury and Calligraphy. The 2026 Hyundai Palisade Hybrid Calligraphy carries estimated ratings of 8.3 L/100 km city and 7.9 L/100 km highway for a combined rating of 8.1 L/100 km.

These figures are impressive for such a large sport utility vehicle and translate to an estimated driving range of nearly 900 kilometres on a full tank of fuel. During our test week, I averaged a higher-than-anticipated 9.9 L/100 km, but it was the same as the last gas-powered Hyundai Kona I tested, which is tiny in comparison.

Wrap it up

The 2026 Hyundai Palisade starts at $53,699, making it a strong value in the three-row midsize SUV segment given its size, comfort, upscale feel, and generous feature set. Our loaded Hybrid Calligraphy tester came in at $65,949 as tested, placing it right in line with segment leaders. The Palisade delivers an impressively upscale interior, extensive standard equipment, and a level of refinement that feels more premium than its badge suggests.

The previous-generation Palisade has proven to be a winner with consumers, and with the improvements made to the 2026 Hyundai Palisade Hybrid Calligraphy, this is a vehicle that should be shortlisted by buyers looking for a good-looking, luxurious, fuel-efficient family hauler. It delivers all the usable technology most families will ever need, without unnecessary gimmicks to complicate the daily commute or a long-distance road trip.