Hyundai Palisade review: Hybrid power now part of luxuriously appointed 2nd gen large SUV

There’s no question that Hyundai is on a big product roll at the moment. From the futuristic Ioniq 5 and ballistic Wheels COTY-winning Ioniq 5 N, to the bold and beautifully practical Santa Fe, Hyundai’s line-up continues its significant upgrade.

The latest to receive a new generation is the Palisade large SUV, with Hyundai giving it an upmarket look and a properly luxurious interior vibe, a gutsy new powertrain that’s also an in-vogue hybrid, plus Hyundai’s newly-extended seven-year conditional vehicle warranty.

For now, there’s only one Palisade model available in Australia: the top-spec Calligraphy. Cheaper models will be part of the line-up in the future, but 83 per cent of previous Palisade sales were the Calligraphy, so Hyundai Australia decided to launch with that model first.

2026 Hyundai Palisade pricing (plus on-road costs):

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It’s true that near-$90,000 plus on-road costs is not cheap, and it’s a full $12,750 more expensive than the top-spec Santa Fe Calligraphy, but the Hyundai Palisade Calligraphy is fully loaded with standard equipment – even the third row of seats is heated, for example. Find the full list of standard features below.

So far, the only drivetrain available in the 2026 Hyundai Palisade line-up is a new 2.5-litre four-cylinder turbo-petrol hybrid making strong 245kW and 460Nm outputs. That’s mated to a six-speed automatic transmission and an all-wheel drive system as standard – unlike the previous Palisade, there’s no front-wheel drive model available just yet, nor pure petrol or turbo-diesel options.

The 2.5-litre hybrid drivetrain was the correct choice for the Hyundai Palisade in Australia as it combines the power of the previous V6 engine but with the low-end torque and efficiency of the previous 2.2-litre turbo-diesel. It’s rated at 6.8L/100km for combined fuel consumption and 154g/km for CO2 emissions, and we got a slightly higher 7.8L/100km result, which is still quite good for such a big vehicle. The Palisade uses 91RON regular unleaded fuel as well, and its 72-litre fuel tank gives a long range.

The previous Palisade was comfortable to drive, and the new model is no different. Australian-spec models received a local suspension tune against softer South Korean and North American models, and while we haven’t driven those versions, the Aussie Palisade model handles competently. It features frequency-select front dampers, self-levelling rear dampers and a unique power steering tune. The result is impressive ride and handling, despite its obvious size.

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A big improvement for the new Palisade compared with the old one is refinement. While the four-cylinder hybrid drivetrain could still be quieter under even moderate throttle, its road and wind noise levels are relatively hushed.

Inside the cabin is an impressive space and a big step forward compared with the previous Palisade. For starters, it’s got leather or leather-like trim almost everywhere you touch, while there’s an added depth to the trim pieces and switchgear that wasn’t previously present in the Palisade. It’s not quite to the level of Genesis, but it certainly feels plusher than the Santa Fe and Ioniq 5.

Not only is the Palisade’s cabin plush, but it’s also quite practical with a lot of available storage. That includes large door bins, a huge central box, a big open tray and then large open cupholders with a wireless phone charger next to them. Front seat comfort is excellent, especially for the driver and their 18 ways of adjustment, including the ‘relaxation’ mode that throws the seat back in the best thing since lie-flat seats in airline business class.

The dual 12.3-inch screen layout used in the Palisade is one we’ve seen before in the Santa Fe, but it still works well. The touchscreen layout is dead easy to use, while the screen quality is sharp as well. The 14-speaker Bose sound system could use a bit more bass, but it’s still clear and warm.

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Move rearward and unlike many other seven/eight-seaters we’ve seen, rear passengers are still very well catered for. The second row is huge, with ample room for people above six-foot tall, and amenities are seemingly endless with a separate climate zone, multiple charging options, sun shades, door pockets and even heating and ventilation for the outboard seats. Plus, if you don’t need eight seats, for an extra $1000 you can choose the captain’s chairs for a seven-seat layout – they’re electrically adjustable like the standard pews but add a walk through to the third row.

Speaking of the third row, it’s also excellent. Third rows that are functional for everyday use by folks of many sizes are rare – most are small and only for kids – but the Palisade’s is just that. Plus, it also has heated seats, air vents, speakers, charging and cup holders so those back there won’t feel shortchanged. Those with child seats will be happy to know that the third row features two both top-tether and ISOFIX points as well.

With all the seats erect, there’s 300 litres of space in the Palisade’s boot, which expands to 712 litres with the third row folded. Impressively, the boot features hooks, side storage, under floor storage and even a full-size alloy spare wheel. Folding the second row unlocks a huge 2081 litres of space and huge potential for trips to Ikea.

The 2026 Hyundai Palisade Calligraphy is an impressive product, no matter which way you look at it. Its step forward in luxury and overall quality is instantly noticeable, but it’s also somehow even more practical than before, great to drive, very comfortable and both efficient and strong when it comes to performance. Only the short 10,000km annual service requirements, lack of cheaper models and lower towing capacity compared with the previous model grate, but even so, Hyundai’s product roll has continued nicely with the new Palisade.

Hyundai Palisade specifications:

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Palisade Calligraphy standard features:

• 21-inch alloy wheels with a full-size alloy spare
• Automatic LED exterior lighting with front and rear daytime running lights
• Automatic rain-sensing wipers
• Dual sunroofs
• Roof rails
• Keyless entry with push button start
• Key phone functionality
• Electric tailgate with easy open functionality
• 18-way electric driver’s seat with memory
• 12-way electric front passenger seat
• Heated leather steering wheel
• Nappa leather upholstery with a suede headliner
• Heated seats in all rows
• Ventilated front and middle row seats
• Rear privacy glass
• 12.3-inch digital driver’s display
• 12.3-inch touchscreen with live services and over-the-air updates
• Wireless Apple CarPlay and Android Auto 
• AM/FM/DAB+ digital radio
• 14-speaker Bose sound system
• Satellite navigation with live traffic
• 6x100W USB-C chargers
• Wireless phone charger
• Power-folding second and third rows of seating
• In car camera
• Head-up display
• UV centre console steriliser
• Vehicle-to-load (V2L) functionality

Palisade Calligraphy safety features: 

• 8x airbags
• Autonomous emergency braking (AEB) with pedestrian, cyclist and intersection assistance
• Adaptive lane guidance with lane keeping assistance
• Intelligent speed limit assist with traffic sign recognition
• Blind-spot monitoring with a blind-spot camera
• Safe exit assist
• Rear cross-traffic alert (with braking)
• Adaptive cruise control with stop and go functionality
• 360-degree camera
• Automatic rear braking
• Auto high beam
• Side, front and rear parking sensors
• Automatic parking
• Smart park assist (remote control parking from the key)
• Rear occupant alert
• Traffic sign detection with speed limit alert
• Rear automatic emergency braking (low speed)