2026 Hyundai Palisade Hybrid First Drive Review

There’s an idea in economics called the “lipstick effect” that says people are willing to spend more on relatively small luxury goods (hence the reference to lipstick) in the midst of a crisis to essentially feel something again.

It explains how no one can afford a home anymore, but at least we have $100 Labubus to keep us warm at night. The 2026 Hyundai Palisade Hybrid, while priced quite a bit higher than any inexplicably overhyped doll, arguably falls under the same category

It’s a luxurious-feeling family SUV that doesn’t actually cost that much. The fully loaded Ultimate Calligraphy trim stickers for $65,949 as tested; the average transaction price, meanwhile, is $64,445, per the latest AutoTrader.ca Price Index. Yes, there’s an affordability crisis, and yet somehow a three-row hybrid SUV with two sunroofs, 21-inch wheels, and heated leather seats is the average now. And judging by how many previous-generation Palisades I see driving around, it’ll be everywhere soon enough.

Fortunately for those in the market, this proverbial stick of red delivers on its promise as a class-leadingly stylish sport utility that’s really quite nice to drive, practical, and, newly for this year, electrifyingly efficient. It’s a sumptuous yet affordable cocoon in which to self-soothe and forget.

Luxury Drive

Macroeconomics aside, the big headline with the redesigned 2026 Palisade is its available hybrid powertrain. The old one was offered exclusively with a thirsty V6 (and one of those is still available with this new one if you so choose), but Hyundai is finally offering its flagship SUV with an efficient gas-electric setup.

The system, which uses a turbocharged 2.5L four-cylinder, makes 329 hp and is rated to burn an impressive 8.3 L/100 km in the city, 7.9 on the highway, and 8.1 combined. It’s positioned as the premium Palisade powertrain, with the 3.5L V6 that’s also available making 287 hp while earning a rating of 11.9 L/100 km combined.

This on-paper superiority carries out on the open road as well. Really well-judged in pretty much all driving-related aspects, I rarely found myself wanting more acceleration ability, and it steers with more response, precision, and outright pleasantness than a vehicle like it really needs.

Nearly all inputs big and small — from the pedals to the window switches — operate and move with a calculated, pleasurable weight that makes the whole experience feel sufficiently luxurious without being overbearing. The brakes are deliberately spongy in a pleasant, quasi-luxury way, while the ride strikes a practically perfect balance of cush and control.

There’s no learning curve — everything operates smoothly, and the new hybrid powertrain makes the Palisade drive the way it should have driven all along: quiet, silky, and easier on the environment. But put it in sport mode and the throttle becomes more sensitive, the gauges go red, and seat bolsters tighten.

Luxury Vibe

But even if you’re somebody who couldn’t care less how your three-row SUV drives — which is entirely fair — the Palisade Hybrid, especially in this fanciest trim, is an immensely appealing vehicle to simply behold and be in. The outside of the original Palisade was already handsome, but this new one should turn even more heads. Sci-fi lights and rounded-SUV proportions make it look like a cyberpunk Range Rover.

The inside is equally stylish, featuring a big, curved, dual-12.3-inch-screen setup that lives under a big, Art Deco-esque dash whose curved motif can be seen throughout the cabin. Hyundai has thankfully resisted the temptation to make all of its shiny new SUV’s controls touch-sensitive. Buttons and knobs dominate the area below the screens and on the steering wheel, making interacting with the Palisade dead easy.

Oh, and if you can keep up with the cleaning, get this interior in white. It is, as they say, choice.

Really, one of my only complaints is that the seats are covered in leather that feels harder than it should, nor do they feel cosseting to sit in — they’re just seats. The chairs in Hyundai’s own Ioniq 9, for example, feel notably better sculpted to the body and would have done wonders here.

Final Thoughts

The 2026 Hyundai Palisade Hybrid is a luxurious-feeling family SUV without an actual luxury price tag. It looks fancy, it feels fancy, and it drives with more competence and verve than many three-rows that cost tens of thousands of dollars more.

Its new fuel-sipping, money-saving hybrid powertrain only doubles down on that budget-conscious baller hauler vibe while providing a more agreeable driving experience. The competition is vast and fierce, but the new Palisade Hybrid lands firmly as one of the nicest in its class.