Hyundai Palisade vs. Kia Telluride: Comparison of Korea’s midsize three-row SUVs

The Hyundai Palisade and the Kia Telluride have always been related, as the two brands live under the same corporate umbrella. But Hyundai and Kia are gaining more individuality than the American brands during the days of Pontiac, Olds, Buick, Ford, Mercury and Plymouth, Dodge and Chrysler.

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Both Hyundai and Kia recently introduced second-generation versions of their popular three-row midsize SUVs. The new Palisade was released for 2026, while the new Telluride was recently unveiled as a 2027 model.

To get a first impression of the similarities and differences between these two models, let’s compare their size, price, equipment and more.

Passenger and cargo space

Both SUVs are slightly larger than before. They ride on the same 116.9-inch wheelbase. Overall length is nearly identical: the Telluride measures 199.2 inches from stem to stern, while the Palisade is 199.2-200.4 inches, depending on variant. In width, these two are only a fraction of an inch apart.

Three-row seats are standard on both the Kia and Hyundai. On lower trim levels, the middle row is a three-person bench, which can accommodate a total of eight passengers. Once you reach the middle trim levels, you get second-row bucket seats, dropping the total capacity to seven.

Kia wrings a little more luggage space from its medium-sized box truck. With all seats in place, the Telluride offers 22 cubic feet of cargo space, compared to 19 in the Palisade. Fold away the rear seat and the Telluride maintains its lead, 49 cubic feet to 46 cubic feet. In maximum cargo mode, with all rear seats flat, the Telluride gives you 89 cubic feet of cargo space versus the Palisade’s 87.

Engines, transmissions and towing

Both Hyundai and Kia have added a hybrid powertrain to this generation. That gas-electric powertrain is shared between the two brands and consists of a 2.5-liter four-cylinder turbo engine combined with a six-speed automatic transmission and two electric motors. In both cases, all-wheel drive comes standard with the hybrid powertrain. The total power is 329 hp, making the hybrid the step-up engine.

However, the Palisade and Telluride differ with their base engines. Hyundai stuck with a naturally aspirated V-6 as the standard engine. This 3.5-liter engine is paired with an eight-speed automatic transmission and can be combined with front or all-wheel drive; it boasts 287 horsepower and 260 pound-feet of torque.

The Telluride no longer offers a V-6. Instead, he switched to a 2.5-liter turbo-four as the standard engine. It makes 274 horsepower and 311 pound-feet of torque, so slightly less horsepower but more torque than the Palisade’s V-6. Like the Palisade, the base-engine Telluride is available with front- or all-wheel drive.

The Palisade and Telluride both have a maximum towing capacity of 5,000 pounds, and all-wheel drive versions come with a special tow mode that programs the automatic transmission to hold lower gears longer. The hybrid versions have a slightly lower towing capacity: 4,500 pounds for the Telluride Hybrid and 4,000 pounds for the Palisade Hybrid.

Fuel consumption

With any of these SUVs, the hybrid version will be the fuel economy champion. However, at this time we only have EPA numbers for the Palisade Hybrid, not the Telluride Hybrid. Those numbers are good: In its most economical configuration, the blue front-wheel drive version, the Palisade Hybrid’s estimates are 33 mpg in the city and 35 mpg on the highway. Other front-wheel drive models top out at 31 mpg in the city and 32 on the highway, which is still solid. Estimates for the all-wheel drive Palisade Hybrid are 29 mpg in the city and 30 mpg on the highway.

For the non-hybrid versions, you’d think the Kia’s turbo-four would get better mileage than the Hyundai’s V-6, but the Telluride really doesn’t have much of an advantage. With all-wheel drive, the two SUVs’ EPA numbers are exactly the same: 18/24 mpg city/highway. With front-wheel drive, the Kia has a 1 mpg advantage: 20/26 mpg versus the Hyundai’s 19/25 mpg. Both models fare worse with their off-road versions. The Palisade XRT Pro is 16/22 mpg and the Telluride X-Pro is 17/22 mpg.

Off-road capabilities

Those off-road models, the Palisade XRT Pro and the Telluride X-Pro, are quite similar in terms of equipment. Their off-road features include 18-inch wheels with all-terrain tires, an electronic limited-slip rear differential, some off-road driving modes, towing loops for recovery, and a camera system that shows what’s underneath the vehicle (at speeds up to 6 mph). The Telluride X-Pro has slightly more ground clearance (9.1 inches) than the Palisade XRT Pro (8.4 inches), but neither has skid plates.

Prices and equipment levels

Whether buyers are in a Hyundai or Kia showroom, they are faced with a wide range of choices when it comes to trim levels. The Palisade is available in seven different flavors: SE, SEL, SEL Convenience, SEL Premium, Limited, XRT Pro and Caligraphy; prices range from $41,035 to $56,160.

The Palisade Hybrid also has seven variants, but they are not exactly the same. The main difference is that the gas-electric Palisade skips the base SE, the off-road-focused XRT Pro and the mid-range SEL and SEL Convenience trims. The Palisade Hybrid is also a few thousand more expensive, between $45,760 and $58,380.

The Telluride offers no less than 10 different trim levels with its base engine: LX, S, EX, X-Line EX, SX, X-Line SX, X-Pro SX, SXP, X-Line SXP and X-Pro SXP. Prices range from $40,735 to $58,335. The Telluride Hybrid only has five variants, skipping the front-wheel-drive-only LX and the off-road X-Pro models. The Telluride Hybrid versions are EX, SX, X-Line SX, SX-Prestige and X-Line SX Prestige. Pricing for the Telluride Hybrid hasn’t been announced yet, but we expect a price premium of a few thousand dollars over the equivalent non-hybrid.

So in fact the prices of the two brands are exactly above each other. This also applies to the packaging of these two models. The biggest difference is in the base powertrain: a V-6 at Hyundai versus a turbo-four at Kia. Otherwise, it largely comes down to style. The SUVs from both brands have been given a dramatic new look. Which one do you prefer?

Joe Lorio has been obsessed with cars since his Matchbox days, getting his first subscription to Car and Driver at the age of 11. Joe began his career at Automobile Magazine under David E. Davis Jr., and his work has also appeared on websites such as Amazon Autos, Autoblog, AutoTrader, Hagerty, Hemmings, KBB and TrueCar.