The Kia Telluride and Hyundai Palisade have long been among Edmunds' favorite three-row SUVs, offering roomy seating, classy designs, generous features, and pricing that can undercut competitors by thousands of dollars. However, deciding between them is tricky because they are mechanically related and share many similarities. The decision has become even more complex now that both SUVs have undergone full redesigns. Hyundai gave its 2026 Palisade a major overhaul with new styling, advanced technology, and a new hybrid powertrain achieving mid-30s mpg. Kia has similarly updated its just-released 2027 Telluride. But subtle differences exist, and Edmunds' auto experts have tested and compared both to help you decide.
Interior Space and Conveniences
The Palisade and Telluride share similar exterior dimensions but differ inside. The Palisade offers more front legroom and an optional front passenger seat with deep reclining angles and a footrest, mimicking a lounge chair. These lounge-style seats are also available as second-row captain's chairs. The Telluride is roomy but doesn't match the Palisade's potential for luxury. On paper, the Telluride has more cargo space behind the third row, but in testing, it couldn't fit hard-sided luggage without obstructing the liftgate. The Palisade's available power-sliding and reclining third row provided an advantage by moving seats forward. Interior quality and ambience are evenly matched, with the Telluride featuring a linear, angular design while the Palisade adopts soft curves reminiscent of midcentury modern style. Both offer standard synthetic leather and optional high-end leather. However, the Palisade has a slight edge for superior daily utility and 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. Despite the V6's higher output, the Telluride feels stronger and quicker for highway merging. At the test track, the Palisade accelerated from 0 to 60 mph in 8.8 seconds, while the Telluride did it in 8.1 seconds. Both offer an optional hybrid powertrain combining a turbocharged four-cylinder with hybrid components for 329 horsepower and superior fuel economy. The front-wheel-drive Telluride Hybrid achieves an EPA-estimated 35 mpg combined, slightly ahead of the Palisade Hybrid's 34 mpg. Both hybrids are quick, accelerating to 60 mph in around 7 seconds.
Winner: Telluride
Technology Features
Both SUVs feature dual 12.3-inch displays—one for digital gauges and one for touchscreen infotainment and cabin controls. Apple CarPlay and Android Auto come standard. The Telluride offers two standard wireless phone chargers, making it more convenient for front passengers. Driver assistance and safety tech are nearly identical, including blind-spot alert, adaptive cruise control, and lane centering for relaxed highway driving.
Winner: Tie
Price and Value
The Hyundai Palisade starts at $41,035 including destination, with the hybrid costing an additional $4,725. The Telluride starts at $40,735 including destination, with a $7,300 premium for the hybrid. While the regular Telluride is slightly more affordable, the Palisade Hybrid costs less and comes with standard second-row captain's chairs, with optional bench seats for eight passengers. The Telluride Hybrid is limited to seven passengers. 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 make both the Palisade and Telluride excellent family-friendly three-row SUVs. However, the Palisade's richer luxury feel and more affordable hybrid give it a slight edge.
This story was provided to The Associated Press by the automotive website Edmunds. Dan Frio is a contributor at Edmunds.
