The Kia Telluride and Hyundai Palisade have been among Edmunds’ favorite three-row SUVs for many years now. They boast roomy seating, classy designs, a generous number of features, and pricing that can potentially undercut the competition by thousands of dollars. But the “Telluride or Palisade?” decision can be tricky because the SUVs are mechanically related and share many similarities. It’s gotten even trickier now that both SUVs have received full redesigns.
Hyundai gave its 2026 Palisade a big makeover, complete with new styling, new technology features, and a newly available hybrid powertrain for mpg in the mid-30s. Kia has done much of the same for its just-released 2027 Telluride. But there are subtle differences between these two SUVs that you’ll want to know about. Edmunds’ auto experts have tested and compared the Telluride and Palisade to help you decide which one is the better SUV for your needs.
Interior space and conveniences
The Palisade and Telluride share the same general exterior dimensions but differ inside. The Palisade offers more front legroom, enough that you can order an optional front passenger seat with deep reclining angles and a footrest that mimics the functionality of your living room lounge chair. These lounge-style seats are also available as second-row captain’s chairs. The Telluride is certainly roomy and nice inside, but it doesn’t quite match the Palisade’s potential for royal poshness for its front and second-row passengers.
On paper, the Telluride offers more cargo space behind the third row. But in Edmunds’ testing, we found it couldn’t handle our hard-sided luggage without obstructing the liftgate. Here, the Palisade’s available power-sliding and reclining third row gave it an advantage, moving the seats forward enough to fit our suitcases.
Interior quality and ambience are evenly matched. The Telluride’s interior design has a linear and angular theme. The Palisade, meanwhile, looks to the past with soft curves and rounded edges that recall midcentury modern design. Both offer standard synthetic leather and available high-end leather upholstery. You’ll undoubtedly have your favorite, but we think the Palisade has a slight edge here for its superior daily utility and no-compromises luxury.
Winner: Palisade
Power and mpg
The Telluride comes standard with a 274-horsepower turbocharged four-cylinder engine, while the Palisade starts with a 287-horsepower V6. The V6’s added power looks good on the spec sheet, but we’ve found in our testing that the four-cylinder Telluride actually feels stronger and quicker for urgent highway merging and passing. At the Edmunds test track, the Palisade needed 8.8 seconds to accelerate from zero to 60 mph. The Telluride was quicker with its 8.1-second sprint.
Both models also offer an optional hybrid powertrain that combines a turbocharged four-cylinder and hybrid componentry to produce 329 horsepower and superior fuel economy. The front-wheel drive Telluride Hybrid is capable of an EPA-estimated 35 mpg combined, and the Palisade Hybrid is just a bit behind at 34 mpg. Notably, the hybrid versions are quick, too. Both hybrids accelerated from zero to 60 mph in around 7 seconds in Edmunds’ testing.
Winner: Telluride
Technology features
The Telluride and Palisade both nod to the future with a tour de force of displays, charging and connectivity. Both feature adjacent dual 12.3-inch displays, one for digital gauges and one for touchscreen infotainment and cabin controls. Apple CarPlay and Android Auto smartphone connectivity comes standard in both, but the Telluride offers the benefit of two standard wireless phone chargers, making it more convenient for you and the front passenger to charge at the same time.
Driver assistance and safety tech is nearly identical. Both models come with standard blind-spot alert, stop-and-go adaptive cruise control, and lane centering for relaxed highway cruising or crawling in heavy traffic. The driver still needs to keep hands on the wheel, but these SUVs can easily make highway driving less fatiguing.
Winner: tie
Price and value
The Hyundai Palisade starts at $41,035, including the destination fee. The hybrid costs an additional $4,725. The Telluride starts at $40,735 including destination, with a $7,300 premium to get into the hybrid. While the regular Telluride is slightly more affordable than its rival, the price gap between the entry-level hybrid trims is significant.
The Palisade Hybrid costs less and comes with standard second-row captain’s chairs, with optional bench seats for eight-passenger seating. The Telluride Hybrid is limited to seven passengers with its standard captain’s chairs. Both SUVs are backed by a five-year bumper-to-bumper warranty and an eight-year powertrain warranty.
Winner: Palisade
Edmunds says
Bold styling, great value and available hybrid mpg contribute to the Palisade and Telluride both being excellent picks for a family-friendly three-row SUV. But as you’re likely buying just one or the other, we think the Palisade’s richer luxury feel and more affordable hybrid give it a slight edge.
Picture Courtesy: Kia America via AP, Hyundai Motor America via AP
