Suppose you’ve considered the Hyundai Palisade or Kia Telluride for your next three-row SUV. In that case, you probably know both models are nearly identical under the metal.
Or rather, they were until recently. Redesigned for 2026 with new style, new engines and upgraded technology features, the second-generation Palisade refines an already impressive model that consistently finishes near the top of Edmunds’ annual SUV rankings.
For now, Kia is standing pat with its Telluride. A redesign is coming, but so far Kia has not released any official details or a timetable. If you’re thinking of buying a new three-row SUV, should you get the new Palisade, the current Telluride, or maybe even wait? Edmunds’ auto experts compared these two family-friendly SUVs to find out.
Price and value
Let’s start with the obvious. The 2026 Palisade starts at $41,035, including the destination fee, while the 2025 Telluride starts at $37,885. Both SUVs come with standard eight-passenger seating, LED headlights, a 12.3-inch touchscreen, Apple CarPlay and Android Auto smartphone integration, adaptive cruise control and blind-spot warning. The Telluride also offers standard synthetic leather upholstery, which gives it a more premium feel than Palisade’s standard cloth seating.
The Telluride’s lower starting price is compelling, though the Palisade does offer a few extras to justify its higher price. These include wireless connectivity for Apple CarPlay and Android Auto (so you don’t have to use a USB cord), front and rear parking sensors, and automatic braking while in reverse.
It’s a similar story at the top end of the range. A loaded-up Telluride SX-Prestige costs $52,885, while a Palisade Calligraphy costs $56,160. You’ll pay more for that Palisade but get a few extras in return that aren’t on the Telluride, such as a massaging driver’s seat and front and rear dashcams that you can use to record video and review it at a later time.
Winner: tie
Engines and mpg
Two new engines are among the 2026 Palisade’s changes. A 287-horsepower V6 is standard, and it gets up to a Hyundai-estimated 21 mpg in combined city/highway driving. A turbocharged four-cylinder hybrid with 258 horsepower also joins the lineup. No fuel economy estimates were available at the time of our article’s publication, but we’d guess the Palisade Hybrid will get in the low to mid-30s for mpg.
The new base V6 is a step backward, however. It makes roughly the same power as the larger V6 it replaces, but it also contends with a heavier Palisade. The Hyundai’s extra 400 pounds showed up in Edmunds’ testing, where it took 8.8 seconds to reach 60 mph. That’s more than 1 second slower than before and makes the Palisade one of today’s slowest three-row SUVs.
The Telluride has a 291-horsepower V6 that gets up to 22 mpg combined. That helps it reach 60 mph in 7.5 seconds in Edmunds’ testing, which is about average compared to its rivals. We expect the next-gen Telluride to adopt the new powertrains in the Palisade. Still, for now, it comes down to whether you want the superior acceleration of the Telluride’s V6 or the more frugal mpg potential of the Palisade Hybrid.
Winner: tie
Comfort and cargo space
The Palisade is supremely quiet and comfortable, easily gliding over rough road surfaces without disturbing the cabin. There’s ample visibility for the driver, and both rear rows offer vast expanses of headroom and legroom. The Telluride is equally cushy and forgiving of bad roads, but the new Palisade’s seats and composure are just a bitbetter. This assessment is less an indictment of the Telluride than a testament to the Palisade’s upgrades.
Both SUVs can haul a large amount of cargo and work well for a variety of situations, whether it be bringing home a haul from a big-box store or loading up luggage for a family road trip. The Palisade can hold 19.1 cubic feet of cargo behind its third row or 46.3 cubes if you fold down the third row. Fold down both the second and third rows and you’ll have 86.7 cubic feet to work with. The Telluride has slightly more space on the spec sheet but not enough to make a meaningful difference in real-world use.
Winner: Palisade
Edmunds says
The new second-gen Palisade polishes what was already a class-leading SUV. Freshness is an advantage, but Telluride’s forthcoming redesign should put it back on even footing with its counterpart.
Picture Courtesy: Kia America via AP
