2026 vs 2025 Hyundai Palisade: 3 Improvements and 2 Misses
The 2026 Hyundai Palisade is deeply impressive—but that doesn’t mean it’s without fault.
The first Palisade was arguably the model that most thoroughly helped Hyundai shed the image of a “value” brand. Yes, it was a good value; but it didn’t just compete against other three-row SUVs; it beat them. So there were some sizeable shoes to fill when the second-generation model touched down late last year.
We drove the 2026 Palisade on the launch and yep, it’s super impressive. We’ve spent time with it on our own turf in various trims too, and liked it there. And now it’s won North American SUV of the Year, so we’re far from alone.
During the launch drive of the later Palisade hybrid, Hyundai Canada brought along a 2025 model for a direct comparison. If you’re in the market for a Palisade, should you aim for the new model or will the old one suffice? And if you’ve already got an original, is the ’26 a useful upgrade? Here’s what we found out.
Improvement: Hybrid Engine
One aspect of the original Palisade we regularly dinged here at AutoGuide was the powertrain. The 3.8-liter V6 was fine, with enough pep to handle the daily grind even loaded up with the family and the associated flotsam, but that’s all. The V6 needed to be revved, and it had some of the worst real-world economy figures in the class. In a package so otherwise impressive, it was a weak point.
The new model has two powertrain choices now. The standard engine is a downsized 3.5-liter V6 that is broadly similar in output and efficiency but is at least a little more refined. The available hybrid setup is a major upgrade however, with more power (329 hp) and better fuel economy (29 mpg or 8.1 L/100 km combined). This is the easy pick, not only because it pays for itself in a matter of a few years, but because it makes an already smooth ride even smoother. There’s just one catch…
Miss: Transmission
Hyundai has tweaked the existing eight-speed automatic for the V6, while the hybrid utilizes a six-speed ‘box. Fewer ratios isn’t the problem here: the combination of turbo and electric motor means the hybrid has plenty of low-end grunt. The issue is the sluggish response times from the transmission. When merging onto the highway, the Palisade can take a second or two to kick down, and that makes it hard to accurately judge gaps. The Toyota Grand Highlander, which runs a similar transmission lineup with both its gas motor and up-rated Hybrid Max powertrain, is generally more responsive.
One small win about the new transmission: the updated shifter. Yes, it takes some getting used to Hyundai’s column-mounted, twist-activated shifter, but it keeps hands closer to the wheel. The old model’s push-button shifter didn’t always give the most reassuring signs of a change; it needed deliberate pokes.
Improvement: Premium-Beating Features
Hyundai has thrown everything it has at the Palisade—befitting a flagship model—while also introducing new and useful features. We can count on one hand the number of new vehicles on the market that offer third-row heated seats, and this is one of them. The built-in dashcam feature is an incredibly useful one that we fully expect to spread across the industry over the next decade.
On top of this, Hyundai adds four Relaxation seats, nicks the Ergo Motion driver seat from Genesis, packs in a powerful sound system, and a whole Alphabits box of driver assist acronyms. All this, and a loaded Palisade Calligraphy hybrid is still far from the most expensive choice in the segment.
Miss: Feels Big Now
On paper, Palisade 2.0’s growth is incremental; a little bit here, a little bit there. The more upright, confident design combines with this to make the big Hyundai feel, well… big. Not unwieldy, but a far shout away from sporty a la Mazda CX-90 or an Acura MDX. Driving them back to back, the new model’s size is always on the mind, and it doesn’t “shrink” around the driver in the same way the old model does should the road get twisty. Not that a three-row family SUV should be prepped for lap times, but those graduating from a smaller vehicle may need longer to get accustomed to the Palisade.
That embiggening makes for one of the most spacious cabins in the segment, though something that nearly got its own “miss” entry is the incredibly slow power-folding second- and third-row seats. If you’re loading kids into the way-back or large items into the (admittedly spacious) cargo hold in bad weather, you might actually wish for non-powered seats.
Improvement: First-Class Cabin
Kudos to Hyundai here: even as it was entering retirement, the outgoing Palisade had a cabin that ranked near the front of the class for quality and space. The biggest telltale signs of its age were the black plastic center console controls and a the sizeable bezel around the screens.
This new model might be our favorite design in the segment. With big, bold curves, clever use of negative space and indirect lighting, plus consistently excellent material quality, the Palisade cabin could easily pass for a luxury brand. Only the Mazda CX-90 offers this same level of fancy in the mainstream market. As ever, Hyundai also offers bold color choices, only furthering the appeal.
Verdict: 2026 vs 2025 Hyundai Palisade
Overall, if Hyundai made the decision to sell the outgoing model alongside the new one (“Palisade Classic,” anyone?) we’d still recommend it to folks for its impressive blend of space, features, and value. The new model moves the three-row SUV game on however, so if you’re on the fence, go with the new kid and enjoy the best all-round option on the market right now.
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Kyle began his automotive obsession before he even started school, courtesy of a remote control Porsche and various LEGO sets. He later studied advertising and graphic design at Humber College, which led him to writing about cars (both real and digital). He is now a proud member of the Automobile Journalists Association of Canada (AJAC), where he was the Journalist of the Year runner-up for 2021.
More by Kyle Patrick
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