2025 Kia Telluride vs. 2025 Hyundai Palisade: Your Ultimate Three-Row SUV Choice for Lincoln and Beyond

December 26th, 2025 by

When it comes to selecting a midsize three-row SUV that fits the busy lifestyle and family-focused needs of Lincoln, Gretna, and Papillion neighborhoods, the 2025 Kia Telluride rises confidently above the competition. Both the Telluride and Hyundai Palisade share engineering roots and similar features, yet the Telluride decisively combines advanced technology, robust capability, and refined comfort to deliver best-in-class value and dependability. Whether you’re making the daily Lincoln to Papillion commute or heading out for a weekend getaway near Omaha, this comparison highlights why the Telluride from Kia of Lincoln at 1145 N 48th St, Lincoln, NE 68504 is the smarter, more capable choice.

For any maintenance needs, feel free to schedule service at Kia of Lincoln with our expert technicians committed to keeping your vehicle running smoothly.

Table of Contents

Clear-Cut Advantages: Executive Highlights & Recommendation

Choosing a midsize SUV that accommodates family errands, weekend adventures, and Lincoln-area commuting demands thoughtful evaluation. The 2025 Kia Telluride shines by blending powerful performance with thoughtful design without compromise on technology, comfort, or safety. While the 2025 Hyundai Palisade delivers a worthy effort with similar power and luxury touches, the Telluride rises above with superior towing capacity, more refined interior materials, and technology that truly supports your connected lifestyle.

Key reasons to favor the Telluride include:

  • Best-in-segment towing capacity of up to 5,500 pounds (versus Palisade’s max 5,000 pounds), ideal for hauling trailers or recreational gear.
  • Optional X-Pro trim tailored for light off-road use, offering enhanced ground clearance and rugged styling suited for recreational excursions around Grand Island or Council Bluffs.
  • Stronger safety recognitions, including a top IIHS TOP SAFETY PICK+ rating for three consecutive years, reflecting its commitment to passenger protection.
  • A potent, naturally aspirated 3.8L V6 that delivers brisk acceleration (0-60 mph in ~6.7 seconds) paired with a smooth and responsive 8-speed automatic transmission.
  • Proactive tech features like the Driver Talk system that enhances communication between the front and rear seats, beneficial for families on the go.
  • The industry-leading 10-year/100,000-mile powertrain warranty, offering long-term peace of mind uncommon among competitors.

With all these factors, the Telluride makes a strong case as the preferred choice for Lincoln professionals, family drivers in Gretna, and outdoor enthusiasts near Papillion. Visit Kia of Lincoln or call us at (402) 434-7000 to experience firsthand the Telluride advantage.

Meet the Contenders: Introducing Telluride and Palisade

Both the 2025 Kia Telluride and Hyundai Palisade are midsize, three-row SUVs assembled on related platforms with shared powertrains, but they aim at slightly different buyer needs and preferences.

2025 Kia Telluride:

  • Launched in 2020, the Telluride quickly made a name with its spacious cabin and upscale finishes rivaling entry-level luxury SUVs.
  • Seating arrangements span seven or eight passengers, with flexibility between captain’s chairs or bench seats in the second row.
  • Interior materials include premium-grade SynTex and available Nappa leather, fostering a refined atmosphere for family outings or commutes in Lincoln’s suburbs.
  • The Telluride’s off-road oriented trims like the X-Pro emphasize ruggedness with increased ground clearance and tow capability up to 5,500 pounds — slightly exceeding the competition.
  • Its technology focus, including standard 12.3-inch touchscreens and 10-speaker Harman/Kardon audio on higher trims, caters well to modern, connected lifestyles.

2025 Hyundai Palisade:

  • Hyundai’s flagship SUV, the Palisade, balances mid-size practicality with luxury features, positioned as a refined family hauler.
  • It matches the Telluride’s seating capacity options but tends toward a more conservative interior design and slightly less versatile cargo space.
  • Powertrain specs closely align with the Telluride (3.8L V6, 291 hp), but the Palisade’s towing capacity maxes out at 5,000 pounds.
  • Interior space is generous, yet practicality is somewhat diminished by tighter third-row legroom, an important consideration for growing families.
  • The Palisade excels with its upgraded Calligraphy trims boasting massaging seats and Bose premium sound but falls short on offering unique off-road readiness.

In essence, both SUVs cater to suburban drivers who require comfortable space and advanced features. Still, the Telluride’s thoughtful enhancements in capability, technology, and warranty coverage register meaningful value for buyers prioritizing longevity and everyday flexibility.

Performance Face-Off: Power and Driving Dynamics

Engine and Transmission Excellence

Both the Telluride and Palisade employ a naturally aspirated 3.8L V6 powerplant producing an identical 291 horsepower and 262 lb-ft of torque paired with an 8-speed automatic transmission. This setup offers a combined balance of power and efficiency suitable for Lincoln-area stop-and-go traffic as well as regional highways.

Specification 2025 Kia Telluride 2025 Hyundai Palisade
Engine 3.8L V6, 291 hp, 262 lb-ft 3.8L V6, 291 hp, 262 lb-ft
Transmission 8-speed automatic 8-speed automatic
Drivetrain Options FWD standard, AWD optional FWD standard, AWD optional
Compression Ratio 11.5:1 13.0:1

While both feature smooth power delivery, the Telluride’s slightly more traditional compression ratio supports robust and reliable performance with proven endurance across varied Lincoln roads.

Driving Experience and Handling

The Kia Telluride commands attention with its precise steering and well-tuned suspension optimizing confidence for everyday commutes or family road trips. The firm ride hints at sporty intent, particularly on trims like the SX and X-Pro, which also benefit from self-leveling rear suspension to handle diverse road conditions near Gretna or Grand Island.

In contrast, the Palisade delivers a comfortable, balanced ride but prioritizes quieter and softer suspension tuning, which may feel less engaged on twisty routes. Although both maintain respectable lateral grip of approximately 0.79–0.80 g on the skidpad, the Telluride’s steering feedback and braking distances (approximate 175 feet from 70-0 mph) provide extra confidence for urban and suburban driving environments.

Towing and Off-Road Readiness

Tow your boat or camper with ease in the Kia Telluride, which offers up to 5,500 pounds towing capacity in the X-Pro trim — outclassing the Palisade’s capped 5,000 pounds. This additional strength can prove crucial for families and outdoor enthusiasts venturing around Council Bluffs or Omaha.

The Telluride’s X-Pro and X-Line trims feature enhanced ground clearance (up to 8.4 inches) and robust all-terrain tires, paired with a central locking differential and Tow Mode for optimized traction. This setup equips it for moderate off-road trails and rough terrain, increasing its appeal beyond paved roads. Meanwhile, the Palisade offers off-road-oriented XRT trims, but with less aggressive ground clearance and fewer dedicated off-road features.

Exterior Design: Striking Presence on Every Road

The 2025 Kia Telluride projects a commanding and sophisticated exterior character without resorting to flaunted luxury. Its bold grille design, spacious proportions (196.9-inch length and 78.3-inch width), and tasteful blacked-out trims on special editions tie aesthetics with function, especially valuable for driving through Lincoln and Papillion neighborhoods in style.

The Hyundai Palisade also provides a strong road presence, though its design favors more reserved, angular features and a marginally shorter overall length at 196.1 inches. It offers tasteful trims like Calligraphy with exclusive black badging but generally lacks the Telluride’s more rugged and upscale flair found in X-Pro trims.

Exterior Feature 2025 Kia Telluride 2025 Hyundai Palisade
Overall Length 196.9 inches 196.1 inches
Width 78.3 inches 77.8 inches
Height 69.3 – 70.5 inches 68.9 inches
Ground Clearance Up to 8.4 inches (X-Pro) 8 inches
Wheel Options 18 – 20 inch alloys 18 – 20 inch alloys

The Telluride’s presence is accentuated by available blacked-out badging and high-utility roof rails, which serve both style and practical cargo management for weekend trips from Gretna or Council Bluffs.

Interior Comfort and Space: Room for Family & Cargo

When your vehicle doubles as office, classroom, and transport hub, interior quality and space become paramount. The Kia Telluride boasts a spacious cabin with a generous passenger volume of approximately 151 cubic feet and up to 87 cubic feet of cargo space with seats folded, exceeding the Palisade’s 155.3 cubic feet passenger volume and 86.4 cargo capacity behind the first row by delivering more practical cargo versatility.

The Telluride’s upscale interior is marked by refined materials like SynTex leatherette and optional Nappa leather, along with attractive ambient LED lighting and available dual panoramic sunroofs on higher trims creating an inviting cabin atmosphere.

Interior Specification 2025 Kia Telluride 2025 Hyundai Palisade
Passenger Volume ~151 cubic feet 155.3 cubic feet
Cargo Volume (behind 3rd) 21 cubic feet 18 cubic feet
Cargo Volume (max) Up to 87 cubic feet Up to 86.4 cubic feet
Second-row Seating 7 or 8 passengers (bench or captains) 7 or 8 passengers (bench or captains)
Rear Legroom (2nd/3rd row) Best in class (~42.4 / 36 inches) 42.4 / 31.4 inches
Seat Material Options SynTex, Nappa leather H-Tex, Nappa leather

The Palisade’s third-row legroom, while typical for midsize SUVs, is notably less spacious than the Telluride, potentially limiting comfort on longer drives for family members or guests in Lincoln’s suburbs.

Tech & Connectivity: Stay Engaged and Empowered

The Telluride elevates your in-vehicle experience with a standard 12.3-inch touchscreen accompanied by available dual panoramic displays, offering intuitive navigation and media control tuned for simplicity. Features like wireless Apple CarPlay and Android Auto, a 10-speaker Harman/Kardon premium audio system, and unique Driver Talk intercom technology allow for seamless smartphone integration and family communications during commutes across Grand Island or Omaha.

Technology Feature 2025 Kia Telluride 2025 Hyundai Palisade
Base Touchscreen Size 12.3 inches 12.3 inches
Dual Panoramic Displays Available (SX trim+) Available (higher trims)
Premium Audio System Harman/Kardon 10 speakers Bose 12 speakers (Limited and above)
Wireless Charging Available Available
Wi-Fi Hotspot Standard 3 years (Kia Connect) Standard (Bluelink+, 3 years)
Digital Key Available (Digital Key 2.0) Available (Hyundai Digital Key 2)
Over-the-Air Updates Supported Supported

The Hyundai Palisade competes well with premium touches like massaging seats and Hyundai Pay, but its center console clutter and less intuitive control layouts can hinder overall usability compared to the Telluride’s modern, clean interface.

Safety Systems: Confidence in Every Mile

Safety remains a paramount concern for families in Council Bluffs and Lincoln suburbs. The Telluride upholds its six-year reputation with a comprehensive suite of standard and advanced safety technologies, many of which are optional or limited on the Palisade.

Safety Feature 2025 Kia Telluride 2025 Hyundai Palisade
NHTSA Overall Safety Rating 5-Star Expected 5-Star
IIHS Top Safety Pick+ Yes (3 years running) Top Safety Pick (IIHS 2024)
Forward Collision Warning Standard Standard
Automatic Emergency Braking Enhanced with evasive steering (more available on SX trims) Standard, enhanced on Premium and above
Blind-Spot Monitoring Available Blind-Spot View Monitor (camera in gauge cluster) Available Camera-based monitor
Lane Keeping Assist Standard Standard
Rear Occupant Alert Ultrasonic sensor based Standard, advanced alerts on higher trims
Highway Driving Assist Available HDA2 Available HDA
360-degree Surround View Camera Available on higher trims Standard on XRT and above

The Telluride’s Blind-Spot View Monitor offering a real-time camera feed in the instrument cluster is a standout, helping drivers feel more secure during lane changes on busy Omaha highways.

Fuel Economy and Efficiency: Smarter Trips, Fewer Stops

Fuel efficiency translates directly into fewer refueling stops on your Lincoln commute or weekend drives to Papillion parks. The Telluride provides competitive EPA estimates of up to 22 mpg combined (20 city / 26 highway on FWD trims), slightly surpassing the Palisade’s 21 mpg combined ratings.

Fuel Economy 2025 Kia Telluride 2025 Hyundai Palisade
City MPG 20 (FWD) / 18 (AWD) 19 (FWD/AWD)
Highway MPG 26 (FWD) / 24 (AWD) 26 (FWD) / 24 (AWD)
Combined MPG 22 (FWD) / 21 (AWD) 22 (FWD) / 21 (AWD)

The Telluride also demonstrates strong real-world fuel economy with tight packaging and efficient drivetrains, resulting in continued savings and fewer stops for families in Grand Island or Council Bluffs.

Daily Usability & Versatility: Tailored to Your Lifestyle

Livability is essential for active families juggling school runs, errands, and weekend adventures in the Lincoln metro area. The Telluride’s flexible seating configurations—offering seven-passenger captain’s chairs or an eight-passenger bench—accommodate larger groups comfortably.

Cargo space is generous and adaptable, with 21 cubic feet behind the third row and up to 87 cubic feet folded flat, easily supporting strollers, sports gear, or grocery runs. Multiple USB-C fast charging ports throughout all rows keep devices powered, while features like a hands-free smart liftgate provide convenience.

The Palisade offers respectable interior volume but falls short on cargo flexibility and third-row legroom, potentially complicating longer journeys for families.

Value and Ownership Costs: Invest Wisely, Drive Happily

Budget-conscious Lincoln and Gretna professionals appreciate that Kia backs the Telluride with industry-leading 10-year/100,000-mile powertrain warranty alongside a solid 5-year/60,000-mile limited warranty. This long-term protection means fewer worries about unexpected repairs and greater ownership confidence.

Ownership Aspect 2025 Kia Telluride 2025 Hyundai Palisade
Limited Warranty 5 years / 60,000 miles 5 years / 60,000 miles
Powertrain Warranty 10 years / 100,000 miles 10 years / 100,000 miles (original owner only)
Complimentary Maintenance Not included 3 years / 36,000 miles
Estimated Maintenance Costs Competitive industry rates Slightly higher due to complimentary plan payback

While the Palisade includes a complimentary maintenance program for its first 3 years, its overall long-term ownership costs tend to be higher due to parts pricing and service availability compared to Kia’s widespread dealership network, including expert care at Kia of Lincoln.

Moreover, Kia’s genuine parts and roadside assistance (Kia Roadside Assistance: 800-333-4542) provide added peace of mind, ensuring reliable and convenient support across Nebraska and Iowa.

Final Recommendation: Why the Telluride is Best for Lincoln Area Drivers

For discerning buyers in Lincoln, Gretna, Papillion, and beyond looking for a midsize SUV, the 2025 Kia Telluride stands out for its balanced combination of space, power, technology, safety, and ownership value. Its ability to tow heavier loads, enjoy off-road friendly trims, and provide a modern, upscale interior make it the ideal choice for versatile lifestyles.

The Telluride’s crisp handling and extensive driver-assist features instill confidence whether navigating Omaha’s busy streets or taking the family on a weekend to Council Bluffs’ parks. With longer powertrain coverage and a thoughtful design that anticipates family needs, it offers excellent peace of mind.

Explore our broad lineup of new Kia models at Kia of Lincoln’s new vehicle inventory and uncover exceptional options tailored for your life. Considering a pre-owned alternative? Our great selection of pre-owned Kia’s, Certified Kias and used vehicles of all makes and models awaits you.

Thinking about trading in your current vehicle? At Kia of Lincoln, we make it easy and stress-free: Get an instant offer via our Kelley Blue Book Instant Cash Offer tool and choose cash or credit toward your new Telluride.

Ready to feel the difference? Contact us today at (402) 434-7000 or visit us at 1145 N 48th St, Lincoln, NE 68504 to schedule your test drive and discover why the Kia Telluride delivers proud, reliable transportation that fits your family’s every need.


© 2025 Kia of Lincoln. All rights reserved.

Posted in Kia Telluride