2026 Hyundai Palisade review: Prototype drive

The second-generation Hyundai Palisade has big shoes to fill when it arrives in Australian showrooms next month.

While far from a sales darling, the first iteration was a classy three-row flagship SUV that effectively bridged the gap between mainstream seven-seaters and six-figure luxury barges.

The new one promises to do the same… and then some.

It will be the first Palisade to feature a hybrid powertrain, and very likely the first to wear a five-star ANCAP safety rating from launch. In sole Calligraphy trim, it also debuts a host of new features that elevate the new version above its predecessor.

As with the outgoing model, the new Palisade will continue to be offered in either seven- or eight-seat configurations, once again pitting it up against some of Australia’s favourite family haulers including the Mazda CX-90, Toyota Kluger, and Kia Sorento.

However, Hyundai is aiming higher this time around. Priced at roughly $90,000 before on-road costs, the top-spec Palisade comes in dearer than all the aforementioned alternatives, although it doesn’t quite encroach on the territory of European opposition.

With deliveries set to commence within a matter of weeks, we were invited to spend just over an hour with a near-production prototype vehicle at a private facility on the outskirts of Sydney.

Read on to find out what you can expect from the new Palisade – the top dog in Hyundai’s ICE SUV range.

How much does the Hyundai Palisade cost?

Pricing for the second-generation Palisade hasn’t been officially confirmed, although the new model is expected to retail for around $90,000 before on-road costs in top Calligraphy trim.

That makes it more expensive than the outgoing Palisade, which topped out at $81,719 plus on-roads for the diesel-powered Calligraphy Black Ink AWD.

Not only is the new Palisade dearer than its predecessor, it’s also set to be pricier than direct rivals including the Mazda CX-90 G50e Azami ($86,070 before on-road costs), Toyota Kluger Grande ($85,135 before on-roads), and Kia Sorento PHEV GT-Line ($84,660 before on-roads).

However, the Palisade remains significantly cheaper than German equivalents such as the Mercedes-Benz GLS, BMW X7, and Audi Q7, a point that will seem more relevant as you read through this review.

To see how the Hyundai Palisade lines up against the competition, check out our comparison tool.

What is the Hyundai Palisade like on the inside?

A quick skim of the standard equipment list tells you all you need to know about the interior of the Palisade.

In Calligraphy trim, the new model is absolutely brimming with all the latest technology, comfort and convenience features, so much so that it makes rivals seem like stripped out substitutes.

For example, how many SUVs under $100,000 can claim to offer six heated seats, four of which are also ventilated. Not many, that’s for sure.

Many such examples come up as you comb through the interior of the Palisade. All three rows of seating feature electric adjustment, as does the two-tone leather steering wheel. I do wish the latter would extend out a little further, though, as I struggled to find my perfect driving position in the short time I had with the car.

Our tester was trimmed in caramel brown Nappa leather with black accents, and boy does it pop. Designed to imitate your favourite lounge setting, the Palisade’s cabin both looks and feels far more premium than that of the Kluger Grande and Sorento GT-Line. In fact, this Calligraphy is better compared to European offerings that ask double the money.

Soft-touch finishes span the dashboard and door cards, while the aforementioned steering wheel and black suede headliner wouldn’t look out of place in a Bentley.

Despite that dark roof lining, the cabin still feels light and airy thanks to the fitment of a dual sunroof setup that allows rear passengers to play around with the roof without disrupting the ambience up front.

The driver’s experience of the Palisade is also enhanced by a dash layout that’s both modern and user-friendly – traits that don’t always pair in the current automotive landscape. Rather than cram key functions into the infotainment screen, Hyundai has elected to persist with physical shortcut buttons and a separate climate control panel – a most welcome decision.

As a result, the Palisade will feel familiar to buyers jumping out of older family SUVs, but that’s not to say it’s some kind of relic.

You need only look up at the twin 12.3-inch displays housed in a truly contemporary curved panoramic display.

The central infotainment display runs Hyundai’s latest software, which means wireless smartphone integration, crisp graphics and a tile menu system that’s easy to navigate. Connected services is standard, and you can lock and unlock the Palisade using a digital key on your smartphone.

Moving across, the driver’s display is similarly functional and kind on the eye. There’s plenty of scope for customisation of both the data and visual themes, while more driving data can be found on the windscreen courtesy of a head-up display.

Given the abundance of technology inside the Palisade, it’s no surprise that connectivity options are likewise in high supply. Three fast-charging USB-C outlets can be found at the front of the central bridge, which also houses a wireless charging pad. Oh, and did I mention there’s a fingerprint recognition device?

Hyundai has seemingly thought of everything with this new Palisade, well maybe except for cabin storage.

Given its imposing dimensions, useful cubbies are surprisingly lacking – the centre console bin is modest, as is the glovebox, and the door bins are hugely disappointing. Other storage options include a tray at the base of the centre stack and a wide opening directly above the glovebox. It’s a small blemish on what is otherwise a very impressive front row.

But don’t go yelling ‘shotgun’ just yet, as the second row also exceeds expectations. That’s especially true of our prototype, which was specified with the ‘premium relaxation’ captain’s chairs.

In addition to full electric adjustment, these seats come equipped with heating and ventilation functions, as well as a dedicated armrest. Now that’s what I call fun for the whole family.

Even without much movements of the seats, you’ll find that there’s plenty of leg- and headroom for adults of all shapes and sizes, too.

Amenities include manual window blinds, punchy USB-C outlets and proper climate control, while storage is covered by a sliding drawer in the centre console, map pockets, and practical door bins. You couldn’t ask for much more, but Hyundai has shown a commitment to safety by also adding safe-exit warning sensors for the rear doors.

So, surely the third row must be a spartan wasteland? Nope, not at all.

Most large SUVs subject those in the ‘back-back’ to a cramped fixed seating position that ranges from uncomfortable to unbearable, but not this Palisade.

The inclusion of power adjustment for the rear seats brings a whole new level of usability to the third row, and even these oft-neglected chairs are heated (outboard only). Occupants also have access to USB-C outlets, cupholders and dedicated air vents.

The generosity of the third row really helps to set the Palisade apart from smaller seven-seat SUVs, and makes it a great option for growing families.

Hyundai hasn’t yet shared a boot capacity figure for the new Palisade, but it appears just about as roomy as rivals.

As is typical for a three-row SUV, space is at a premium with all seven (or eight) seats in use. However, dropping the rear bench unlocks substantial storage space. Indeed, you can take full control of the seating configuration from the rear of the vehicle, using buttons built into the boot wall to fold each of the second- and third-row seats.

Being a hybrid, the Palisade also has a vehicle-to-load power socket down back, as well as a regular 12V outlet. And better yet, there’s a full-size spare wheel mounted underneath the vehicle.

To see how the Hyundai Palisade lines up against the competition, check out our comparison tool.

What’s under the bonnet?

This will be the first time the Palisade has been offered with a hybrid powertrain in any market. The new system mates a turbocharged 2.5-litre four-cylinder petrol engine with an of electric motor and a six-speed automatic transmission, producing a total system power output of 245kW.

To see how the Hyundai Palisade lines up against the competition, check out our comparison tool.

How does the Hyundai Palisade drive?

Like a big, soft family wagon, and that’s no bad thing.

For context, our brief test drive involved cutting laps of a 1.6km closed course designed to mimic sections of the Pacific Highway. The loop contained sweeping corners, a couple of tight hairpin turns and some straighter sections of tarmac, most of which was relatively smooth and undamaged.

Independent of the road surface, it’s immediately clear that the introduction of hybrid power marks a significant step forward in refinement for the Palisade. The new model starts up in silence and remains impressively quiet unless you really flex your right foot.

This is Hyundai’s first crack at a hybrid Palisade, but the powertrain really seems to suit this type of vehicle. NVH improvements are one thing, but the shift towards electrification also promises performance and efficiency gains… at least on paper.

While power and torque are both up considerably to a combined 245kW and 460Nm, the numbers only tell half the story. During my brief stint behind the wheel I found throttle response to be inconsistent – there’s a noticeable delay when flooring the accelerator, particularly when the petrol engine needs to wake up. The six-speed transmission also takes its time to kick down a gear when you’re after a quick burst of speed.

However, once the system is on song the Palisade delivers strong and smooth acceleration right up to highway speeds. The previous-gen Palisade could hit 100km/h from a standstill in between eight and 10 seconds depending on the powertrain, and I’d say the hybrid is a little quicker than the outgoing V6.

Nevertheless, it’s clear that the Palisade is tuned for smooth comfort rather than drag racing – hardly surprising.

As for efficiency, we couldn’t properly test Hyundai’s claims during this prototype drive, but it’s safe to assume that the hybrid is the cleanest, most frugal Palisade yet.

The new hybrid system utilises a dual-motor design, with one motor dedicated to generating power while the other drives the wheels. Hyundai says the next-gen tech extends EV driving range, saves fuel and enables uniquely electric functions including vehicle-to-load (V2L) and ‘Stay Mode’ – the ability to power vehicle electronics without running the engine.

It was tough to get a decent read on the interplay between the petrol engine and hybrid system during our short stint behind the wheel, but that leaves room for further investigation at the upcoming local launch.

You can configure the driving experience using a small, unlabelled drive mode selector sticking out of the dash – toggling on the switch reveals eco, sport, and custom modes. In addition to providing enhanced control over gearshifts, the paddles behind the steering wheel can serve to adjust the intensity of regenerative braking.

There wasn’t enough time to tinker with settings during our drive, but in its default setup the steering is light and direct, with only small inputs required to guide this five-metre long behemoth.

You sit up high with a commanding view of the road ahead, and the bonnet isn’t long enough to instil nerves in the driver. Outward visibility benefits from liberal use of glass all around the cabin, although the rear window won’t be of much help when all seven (or eight) seats are occupied.

That concern is offset by the fitment of a high-resolution surround-view camera system that makes parking the Palisade a slightly less daunting task.

So, while full-size seven-seat SUVs are never the easiest vehicles to drive in the city, the Palisade will likely be better than most.

However, I expect Hyundai’s new family hauler to do its best work on the open road.

As previously mentioned, the cabin is a quiet sanctuary, even at higher speeds. In simulating typical highway travel, I experienced a distinct lack of tyre roar, wind noise, or engine harshness – premium attributes for a mainstream model.

That premium feel is also reflected how the Palisade rides, at least on a short stretch of country road.

Hyundai’s suspension engineers went out of their way to tune the passive self-levelling dampers specifically for Australian conditions, a process that wasn’t undertaken during the development of the Ioniq 9 or Tucson.

The extra effort has seemingly reaped rewards. The Palisade absorbs smaller bumps and imperfections with ease, shielding occupants from unwanted impacts and vibration. At the same time, it doesn’t feel floaty or unsettled over longer undulations. In other words, the balance feels just right for local roads.

That doesn’t take handling into consideration, and the Palisade takes corners in an unsurprisingly relaxed manner. There’s noticeable body roll through tighter corners and understeer bites if you carry too much speed into a bend.

Put simply, the Palisade isn’t dynamically gifted, but that’s not the point. After all, this is a luxury-oriented family SUV. More importantly, it feels composed when driven in smooth, deliberate, and conservative manner.

I say conservative because the advanced driver assist systems (ADAS) in the Palisade are seemingly just as intrusive as those in other Hyundai models.

The camera-based driver monitoring system is easily triggered by a sideways glance, and you’ll often be wrongly accused of speeding. Thankfully, it’s easy to mute the latter system. We’ll get a better sense of how the Palisade’s ADAS behaves when we get a chance to drive a production model on public roads.

To see how the Hyundai Palisade lines up against the competition, check out our comparison tool.

What do you get?

The second-generation Palisade will launch Down Under in a single flagship Calligraphy trim boasting all the best kit available across the range.

2025 Hyundai Palisade Calligraphy equipment highlights:

• 21-inch alloy wheels
• Dual tilt and sliding powered sunroof
• LED headlights
• LED tail-lights
• Privacy glass
• Roof rails
• 12.3-inch touchscreen infotainment system
• 12.3-inch digital instrument cluster
• 14-speaker Bose sound system
• Satellite navigation
• Nappa leather upholstery
• Suede headlining
• 16-way power-adjustable driver seat with memory
• 12-way power-adjustable passenger seat
• Heated and ventilated front seats
• Power-adjustable steering wheel with heating
• Second row relaxation seats (seven-seat option)
• Powered second- and third-row seats
• Heated and ventilated second-row outboard seats
• Heated third-row outboard seats
• 6 x 100W USB-C outlets
• Digital Key
• Fingerprint recognition
• Wireless phone charger
• Rain-sensing wipers
• Digital centre mirror
• Head-up display
• Full-size alloy spare wheel
• Bluelink connected services with OTA updates

To see how the Hyundai Palisade lines up against the competition, check out our comparison tool.

Is the Hyundai Palisade safe?

Hyundai is targeting a five-star ANCAP rating for the new Palisade, after the previous-gen model launched with four stars.

Standard safety equipment includes:

• 8 airbags
• Front, side and rear parking sensors
• Blind-spot monitoring
• Parking collision avoidance
• Highway Driving Assist 2
• Forward collision avoidance
• Intelligent speed limit assist
• Lane-keep assist
• Surround-view cameras
• Smart Cruise Control 2 with stop/go
• Tyre pressure monitoring system

To see how the Hyundai Palisade lines up against the competition, check out our comparison tool.

How much does the Hyundai Palisade cost to run?

Hyundai Australia hasn’t published servicing details for the new Palisade just yet, but the fresh family SUV will be covered by the brand’s recently extended warranty which now spans seven years and unlimited kilometres.

Roadside assistance is included for the lifetime of the vehicle, provided you service within the Hyundai dealer network.

The previous Palisade required annual servicing (or every 15,000km), with five years totalling $2445.

To see how the Hyundai Palisade lines up against the competition, check out our comparison tool.

CarExpert’s Take

If this brief pre-production drive is anything to go by, the next-gen Palisade will be a force to be reckoned with.

Nothing in the sub-$100k seven-seater bracket comes close in terms of standard equipment and premium feel, while even some high-end German SUVs seem a little basic in comparison to the flagship Palisade Calligraphy.

In addition to an exceptional interior, the new Palisade also promises supreme quietness, ride comfort, and practicality, making it an ideal family hauler.

The switch to hybrid power is welcome from both an efficiency and performance standpoint, too.

Yes, prices are up considerably, but it’s easy to justify those hikes having spent some time with the vehicle. If anything, the top-spec Palisade actually seems like a bargain buy compared to the recently launched Ioniq 9, which asks an extra $30,000 for an all-electric powertrain and… not much else.

There’s also the potential for more Palisade variants to be introduced at a later date.

But for now, the Palisade Calligraphy Hybrid is an exciting addition to Hyundai’s lineup and we can’t wait to experience it again in final production form.

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