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The Hyundai Palisade made its debut for the 2020 model year as a fully featured three-row SUV with seating for up to eight people. It has a roomy interior with lots of creature comforts that give it a decidedly upscale appeal. The lineup includes the availability of front-wheel drive or all-wheel drive and a wide range of trims. Even in its base trims, the Palisade is a nicely appointed SUV, but when you get to the top Calligraphy, it’s downright luxurious. Hyundai gave the Palisade a mid-cycle refresh for 2023, but it’s first full redesign is on the horizon for the 2026 model year.

While the Palisade is already a strong offering, there are a few areas where it could see meaningful improvements in its next generation. Hyundai has a great lineup of SUVs, but no vehicle is perfect. Here’s what we’d love to see changed for the second generation of the Hyundai Palisade.

A Hybrid Engine Option

One of the biggest missing pieces in the current Palisade lineup is a hybrid engine. Competitors like the Toyota Grand Highlander and Mazda CX-90 offer hybrids, but Hyundai’s largest SUV is still solely powered by a 3.8-liter V6 engine.

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It delivers smooth power with a respectable 291 horsepower and 262 lb-ft of torque that easily gets it up to speed, but a hybrid option would provide better fuel efficiency without sacrificing performance. There’s already a Tucson hybrid and plug-in hybrid and a Santa Fe Hybrid, so it wouldn’t be a surprise at all to see Hyundai add hybrids for the new Palisade.

More Cargo Room Behind The Third-Row

The Palisade does a great job of accommodating passengers, but cargo is another story. While its overall cargo room is good, with a total of 86.4 cubic feet behind the first row, it’s when you have a full load of cargo that you may run into trouble.

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With the third row of seats up, there’s just 18.0 cubic feet of cargo room in the back. That’s not a lot for families who often have lots of stuff. The Kia Telluride has 21.0 cubic feet behind the third row with nearly the same dimensions, so it’s possible. Expanding that space either by making the overall vehicle slightly longer or reconfiguring its layout could make that area larger and more versatile for families.

Higher Towing Capacity

The current Palisade has a maximum towing capacity of 5,000 pounds when properly equipped. That’s enough for small trailers, boats, and campers, but some competitors can tow more. The Kia Teulluride recently introduced a more capable trim that has a tow rating of 5,500 pounds, so there’s no reason Hyundai can’t do the same.

A bump in towing capacity would make the Palisade an even more versatile choice for those who need to haul heavier loads. Since this is an all-new generation of the Palisade, there’s a good chance it could engineer a more robust tow rating. The more options you have for carrying the family and all their stuff, the better.

Off-Road Capability

The Palisade does a great job in that department, but it’s currently only for more modest off-road adventures. A more rugged trim with enhanced off-road capabilities could broaden its appeal. It’s become practically commonplace to have an off-road option in an SUV’s trim range. A model with beefier all-terrain tires, improved approach and departure angles, and an enhanced suspension setup would allow the Palisade to handle rougher trails with ease and broaden its appeal.

Features like skid plates and a locking differential could also help it compete with more adventure-ready SUVs, making it a stronger choice for those who want a mix of family-friendly practicality and off-road versatility. An off-road trim could also boast a more durable interior with materials designed to stand up to dirt and water, which is a great idea for kids, even if you don’t plan to go off-road.

There aren’t any confirmed details about what to expect in the next-gen Hyundai Palisade, with only leaked information at this point. Hopefully, we’ll see the full US version of the 2026 Hyundai Palisade soon and some of our hoped-for improvements will become reality.