Hyundai's second-generation Palisade went on sale for 2026, and Kia's second-generation Telluride followed as a 2027 model, built at Kia's West Point, Georgia, plant. They share more than a corporate parent. Both ride on a 116.9-inch wheelbase, both measure 199.2 inches long in most trims, and both offer the same turbocharged 2.5-liter hybrid, rated at 329 hp and 339 lb-ft. Where they differ is the gas engine, the details of packaging and price, and the way each brand has spread its features across the lineup.
Telluride vs. Palisade at a glance
| Metric | 2027 Kia Telluride | 2027 Hyundai Palisade |
|---|---|---|
| Starting MSRP (gas) | $39,190 (LX FWD) | $39,735 (SE) |
| Starting MSRP (hybrid) | $46,490 (EX FWD) | $44,560 (SEL) |
| Gas engine | 2.5L turbo I4, 274 hp, 311 lb-ft | 3.5L V6, 287 hp, 260 lb-ft |
| Hybrid | 2.5L turbo hybrid, 329 hp, 339 lb-ft | 2.5L turbo hybrid, 329 hp, 339 lb-ft |
| Best EPA combined, gas | 22 mpg (FWD) | 22 mpg (SE FWD) |
| Best EPA combined, hybrid | 35 mpg (EX FWD) | 34 mpg (SEL/SEL Premium FWD) |
| Max towing gas/hybrid | 5,000 / 4,500 lb | 5,000 / 4,000 lb |
| Cargo behind 3rd/2nd/1st row | 22.3 (21.3 hybrid) / 46.3 / 86.9 cu ft | 19.1 / 46.3 / 86.7 cu ft |
| IIHS | Top Safety Pick+ (built after June 2026) | Top Safety Pick+ (2026, built after Nov. 2025) |
| NHTSA overall | Not yet rated | 5 stars |
Prices exclude destination (Kia: $1,545). Specifications and EPA figures as published by Kia and Hyundai; IIHS and NHTSA results as of early October 2026.
Price and powertrains
The gas Telluride runs from $39,190 for an LX FWD to $56,790 for an X-Pro SX-Prestige, with S, EX, SX, SX-Prestige and the dressier X-Line and off-road X-Pro versions in between. The Telluride Hybrid starts at $46,490 for an EX FWD and tops out at $57,590 for an X-Line SX-Prestige, all before Kia's $1,545 destination charge. Hyundai's 2027 Palisade lists SE ($39,735), SEL ($42,240), SEL Premium ($45,600), Limited ($50,070), XRT Pro ($50,170) and Calligraphy ($54,860). The Palisade Hybrid runs from $44,560 (SEL) to $57,680 (Calligraphy Black Ink). Those Hyundai figures are the starting prices listed on HyundaiUSA.com.
So the Telluride is $545 cheaper to get into with a gas engine, while the Palisade is the cheaper way into a hybrid by $1,930, partly because Hyundai offers the hybrid on a lower trim. Kia doesn't offer its hybrid on the LX or S.
The gas engines take different routes. Kia's turbocharged four makes 274 hp and 311 lb-ft through an eight-speed automatic, 49 lb-ft more torque than the previous Telluride's gas engine. Hyundai uses a newly developed 3.5-liter V6 rated at 287 hp and 260 lb-ft, also with eight speeds. Both gas models tow up to 5,000 pounds. The shared hybrid uses a six-speed automatic, but Kia rates it to tow 4,500 pounds, 500 more than Hyundai's 4,000-pound rating for the Palisade Hybrid.
Efficiency, space and tech
Fuel economy
Neither SUV has a clear edge with gas power. The EPA rates the gas Telluride FWD at 20 mpg city, 26 highway and 22 combined, AWD versions at 18/24/20 and the X-Pro at 17/22/19. The Palisade SE FWD matches the Kia at 19/26/22, other FWD trims are rated 19/25/21, AWD models 18/24/20 and the XRT Pro 16/22/19. The hybrids are where the Telluride pulls slightly ahead. Its most efficient version, the EX FWD, is rated 34/36/35, other FWD hybrids 32/34/33 and AWD hybrids 30/32/31. The Palisade Hybrid SEL and SEL Premium FWD are rated 33/35/34, the Limited and Calligraphy FWD 31/32/31 and AWD versions 29/31/30. Kia quotes a total estimated range of 637 miles for the EX FWD hybrid.
Space
The Telluride's cargo bay behind the third row measures 22.3 cubic feet in gas models and 21.3 in hybrids, against 19.1 for the Palisade. With the third row folded, both offer 46.3 cubic feet, and maximum space is 86.9 cubic feet in the Kia and 86.7 in the Hyundai. Both seat seven or eight. Kia says the new Telluride has class-leading second-row legroom, based on its own November 2025 comparison, and its second-row bench is designed so some child seats can stay in place while passengers climb into the third row. The Palisade counters with Relaxation seats for the first and second rows and an available power-folding, sliding and reclining third row that can also be heated.
Technology
Every Telluride gets a 12.3-inch touchscreen with navigation, wireless Apple CarPlay and Android Auto and tri-zone climate control. Available upgrades include dual 12.3-inch panoramic displays, a 12-inch head-up display and a 14-speaker Meridian audio system. The Palisade's standout features include a built-in two-camera dash cam, Digital Key 2 Premium, over-the-air updates and 100-watt USB-C ports in every row. For off-road use, the Telluride X-Pro brings 9.1 inches of ground clearance, all-terrain tires and an electronic limited-slip differential. The Palisade XRT Pro is Hyundai's equivalent.
Safety and ownership
Both earn the IIHS's top award, with Good ratings across the crash tests and front crash prevention evaluations. There's a catch with the Telluride: the Top Safety Pick+ applies only to vehicles built after June 2026, and headlights on earlier builds are rated Marginal. Check the build date on the door-jamb sticker. The Palisade's award covers 2026 models built after November 2025, and IIHS had not yet listed the 2027 model separately. NHTSA rates the 2027 Palisade five stars overall, with four stars for frontal crash protection, five for side and four for rollover. The 2027 Telluride appears in NHTSA's database but was not yet rated in early October 2026. Kia advertises a 10-year/100,000-mile limited warranty for the Telluride, and Hyundai lists 5-year/60,000-mile new-vehicle and 10-year/100,000-mile powertrain coverage for the Palisade.
Which should you buy?
Buy the Kia Telluride, narrowly. It costs less to get into, has more space behind the third row, tows more as a hybrid and earns the best EPA rating of the pair. The hybrid EX FWD at $46,490 is the pick for most families.
The Palisade makes more sense if you want the cheapest route into a hybrid three-row SUV, which is the $44,560 SEL, or if you prefer a naturally aspirated V6. It also has NHTSA ratings on record today and features such as the built-in dash cam. In practical terms, it's hard to go wrong with either.
How we rated it: this comparison is based on manufacturer specifications and pricing from Kia and Hyundai, EPA estimates and NHTSA/IIHS results available in October 2026. Drive Edition has not road-tested these vehicles.