When the 2023 Hyundai Palisade XRT first rolled onto dealer lots, it caused a bit of a stir among three-row SUV shoppers. People saw the darkened grille, those chunky 20-inch wheels, and the rugged skid plate accents and immediately thought: "Finally, a Palisade that can take on a Jeep."
Well, not exactly.
If you're looking for a rock crawler to tackle the Rubicon, you're looking at the wrong car. Honestly, the 2023 Hyundai Palisade XRT is a masterpiece of branding over-engineering. It's an appearance package—a very good-looking one—but it doesn't suddenly turn this suburban cruiser into a mud-bogging beast. However, for a specific type of buyer, it’s arguably the coolest version of one of the best SUVs on the market.
What is the 2023 Hyundai Palisade XRT, anyway?
Basically, the XRT is a middle-of-the-pack trim. It sits right above the SEL but doesn't quite reach the Napa-leather-soaked heights of the Limited or Calligraphy trims. It was introduced during the 2023 mid-cycle refresh, which gave the entire Palisade lineup a more squared-off, "truck-ish" face.
The XRT leans into that "truck" vibe hard.
You get exclusive dark-finish 20-inch wheels that look significantly more aggressive than the sparkly alloys on the higher trims. There’s a blacked-out grille, black roof rails (perfect for that Thule box you’ve been eyeing), and front/rear skid plate designs that look like they could take a hit from a stray branch on a gravel driveway.
Inside, it's pretty much a black-on-black affair. You get H-Tex synthetic leather, which is durable and easy to clean—a godsend if you have kids who treat the back seat like a cafeteria. It’s got a sunroof, a power liftgate, and the massive 12.3-inch touchscreen that makes the cabin feel like a mobile command center.
The Performance Reality Check
Underneath all that "don't mess with me" exterior trim, the mechanicals are the same as every other Palisade. You're looking at a 3.8-liter V6 engine pushing out 291 horsepower and 262 lb-ft of torque. It’s a smooth, naturally aspirated engine. No turbos here to lag or break.
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It’s paired with an 8-speed automatic that shifts like silk.
Does it go off-road? Kinda.
If you opt for the HTRAC All-Wheel Drive system (which was a $1,900 add-on back in '23), you get a dedicated "Snow" mode and "Tow" mode. The AWD system is great for rainy school runs or getting to a snowy cabin. But with 7.9 inches of ground clearance, you aren't clearing any major boulders. It’s a road car that looks like it spends its weekends at REI.
Towing and Real-World Use
Despite the rugged looks, the towing capacity stays at a respectable 5,000 pounds. That’s enough for a pair of jet skis or a decent-sized teardrop camper. If you actually plan on towing, make sure you have the trailer brakes set up; without them, the rating drops significantly.
Fuel economy? It's just okay.
- Front-Wheel Drive: 19 city / 27 highway / 22 combined mpg
- All-Wheel Drive: 19 city / 24 highway / 21 combined mpg
It's a big, heavy box. You aren't going to win any "Green Car" awards, and honestly, the lack of a hybrid option is the Palisade's biggest Achilles' heel compared to something like a Toyota Highlander.
Why Most People Pick the XRT Over the SEL
You’d think everyone would just buy the SEL and call it a day since it’s cheaper. But the 2023 Hyundai Palisade XRT fills a weirdly specific gap.
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The SEL looks like a "mom car."
The XRT looks like... well, something else. It has an edge. It’s for the parent who wants the 18 cu-ft of cargo space (behind the 3rd row) and the safety of a Top Safety Pick+ rating, but doesn't want to look like they've completely given up on having an adventurous life.
It’s worth noting that the XRT actually misses out on some of the "Premium Package" options available on the SEL. If you want the 360-degree camera, the 12-speaker Harmon Kardon sound system, or ventilated seats, you can't actually get them on the XRT. You have to go SEL with the package or jump up to the Limited.
It's a frustrating trade-off: do you want the cool black wheels, or do you want your butt cooled on a hot July afternoon?
Safety and the "Updated" Test Results
Hyundai has a stellar reputation for safety, and the 2023 Palisade is no exception. It’s loaded with tech: Forward Collision-Avoidance, Lane Keeping Assist, and Blind-Spot Warning are all standard.
However, there’s a nuance here.
While the IIHS gave it a Top Safety Pick+ for 2023, it actually received a "Poor" rating in the updated moderate overlap front crash test. This is a newer, tougher test that focuses on rear-seat passenger safety. Most SUVs in this class struggled with it, but it’s something to keep in mind if you’re frequently hauling kids in the second or third row. On the flip side, it scored "Good" (the highest rating) in the updated side-impact test, which uses significantly more force than the old version.
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Is It Still a Good Buy Today?
We're a few years out from the 2023 launch now. If you're looking at a used 2023 Hyundai Palisade XRT, you're likely seeing prices that have finally stabilized.
One of the biggest perks of buying this vehicle used—or even keeping one—is the warranty. Hyundai’s 10-year/100,000-mile powertrain warranty is legendary, though be aware that if you're the second owner, that powertrain warranty usually drops to 5 years/60,000 miles unless it's a Certified Pre-Owned (CPO) unit.
The 2023 model year was a "refresh," meaning it won't feel dated for a long time. The infotainment screen is huge and crisp. It supports Apple CarPlay and Android Auto (though annoyingly, it's wired on the 12.3-inch screen, while the smaller screens on cheaper models got wireless).
Actionable Next Steps for Buyers
If you’re currently cross-shopping the XRT against other trims or brands, here is how you should actually make the call:
1. Check the "Butt Test": Sit in an XRT and then sit in an SEL with the Premium Package. The XRT has H-Tex (synthetic) and the SEL can have leather. If you live in Florida or Texas, the lack of ventilated seats on the XRT might be a dealbreaker.
2. Verify the Towing Setup: Many XRTs look "tow-ready" because of the skid plates and rugged vibe, but not all come with the actual hitch installed. If you need to pull 5,000 lbs, make sure the hardware is there.
3. Look at the Tires: The XRT's 20-inch wheels look great, but replacement tires for 20-inch rims are significantly more expensive than the 18s found on the SE trim. Factor that into your long-term maintenance budget.
4. Compare with the Kia Telluride X-Line: If you really want off-road capability, the Telluride X-Line (the Palisade's mechanical twin) actually offers a slight suspension lift and better approach angles. The Palisade XRT is strictly a "looker."
The 2023 Hyundai Palisade XRT isn't a rugged off-roader, and it isn't a luxury limo. It’s a stylish, incredibly practical middle ground that looks better in a driveway than almost anything else in the $40,000 to $45,000 price range. Just don't expect it to climb a mountain.