Hyundai is out testing a prototype for an updated version of its popular Palisade mid-size SUV.

The three-row SUV is one of Hyundai's best-selling vehicles in the U.S., with 2021's sales tally coming in at 86,539 units, the best result since the Palisade arrived on the scene back in late 2018. The update should keep the momentum going as the Palisade faces some newer competition.

The prototype is heavily camouflaged but we can spot new designs for the headlights and grille. We should also see revised fascias at both ends, with the front in particular expected to receive a cleaner, more upscale look.

We don't have any shots of the interior but a revised dash is expected. Look for the new design to feature a floating digital instrument cluster and infotainment screen.

2023 Hyundai Palisade facelift spy shots - Photo credit: S. Baldauf/SB-Medien

2023 Hyundai Palisade facelift spy shots - Photo credit: S. Baldauf/SB-Medien

We don't expect any change in the powertrain department. The Palisade is currently offered exclusively with a 3.8-liter V-6 rated at 291 hp. The engine is mated to an 8-speed automatic and buyers can choose between front- or all-wheel drive.

The Palisade arrived on the market for the 2020 model year. Given Hyundai's typical model cycle, we should see the updated version arrive for the 2023 model year, meaning a reveal later this year is likely. An updated version of the related Kia Telluride is also expected at this date.

The 2022 Palisade is priced from $34,335, including a $1,185 destination charge. A small price hike is possible for the updated version.

Hyundai builds the Palisade at a plant in Ulsan, South Korea, but has been considering adding some production in the U.S. to meet strong demand, though no decision has been taken.