Jeep is making a significant return to the compact crossover SUV segment with its all-new 2026 Cherokee, ending a three-year hiatus that has drawn comparisons to historical automotive strategic blunders, such as Henry Ford’s delay in replacing the Model T. This belated re-entry into a highly competitive market, however, aims to leverage shifting societal and regulatory environments, potentially positioning the new Cherokee for greater success than an earlier launch might have achieved.

The 2026 Cherokee marks a radical departure in design from its 2023 predecessor. Design leader Vince Galante drew heavy inspiration from the original XJ-generation Jeep Cherokee, the model credited with pioneering the dominant unibody SUV segment. The new KM Cherokee embraces a "Hip 2B Square" aesthetic, borrowing a distinct boxiness from the Dick Teague-designed original, limited only by aerodynamic considerations. Key design elements include a squared-off seven-slot grille, flanked by U-shaped daytime running lights reminiscent of the XJ’s rectangular sealed-beams. Standard 18-inch and optional 20-inch wheels are framed by XJ-inspired trapezoidal arches, while the taillamps wrap around the corners with a new horizontal orientation, evoking Jeep’s classic jerrycan look. An upright, boxy D-pillar, enhanced with a Germanic Hofmeister kink, directly addresses a common complaint of the outgoing KL Cherokee: insufficient cargo room, which has now been increased by 25 percent.

Underpinning this new generation is Stellantis’ STLA Large platform, a significant upgrade from Fiat-Chrysler’s Compact-Wide architecture. This switch results in a substantial increase in size, with a 6.1-inch overall length stretch and a 6.5-inch longer wheelbase. This expansion positions the 2026 Cherokee as either the largest compact or smallest midsize SUV, rivaling popular models like the Honda CR-V, Ford Bronco Sport, Toyota RAV4, and Chevy Equinox. The elongated wheelbase and shorter overhangs are characteristic of battery-electric vehicles, a powertrain option the STLA Large platform is designed to support. Width increases by 1.5 inches, while height slightly decreases by 0.3 inch, with nearly every interior dimension seeing an upward adjustment, enhancing class competitiveness. Jeep has also focused on elevating materials quality, particularly in upper trim levels, with top-line Overland models featuring fancy perforation patterns on seat inserts. An "Arctic" interior color scheme is available for the top three trims, complementing the standard black interior.

For its launch, the 2026 Jeep Cherokee will exclusively offer an all-new hybrid powertrain. This system pairs a 1.6-liter turbocharged four-cylinder engine with a two-motor planetary combiner hybrid system, drawing power from a 1.1-kWh lithium-ion (NCM) battery positioned under the rear passenger compartment. This hybrid design leverages technology originally patented by Toyota in 2000, with Stellantis taking advantage of Toyota’s decision to make 24,000 electrification-related patents royalty-free through 2030. The engine alone produces 177 horsepower at 5,500 rpm and 221 lb-ft of torque at 2,000 rpm. The combined net output for the hybrid system is 210 hp and 230 lb-ft, managed by a continuously variable automatic transmission. This output provides a respectable balance, subdividing the power of the previous generation's 2.4-liter naturally aspirated and 2.0-liter turbocharged four-cylinder options.

The new Cherokee boasts impressive performance and fuel efficiency figures. Its 3,500-pound tow capacity is only 500 pounds shy of the previous 2.0L turbo model, making it a capable option for small trailers. Fuel economy sees a significant leap, with estimated EPA city/highway/combined ratings of 42/33/37 mpg, a substantial improvement over the old model's 20-21/26-29/22-24 mpg. This efficiency translates to an impressive estimated combined range of 507 miles from its 13.7-gallon fuel tank, vastly outperforming the previous generation's 348–379 miles from a larger 15.8-gallon tank. Jeep projects that average American commuters could spend less than $100 per month on gas with the new Cherokee.

All-wheel drive is standard on the 2026 Cherokee, directly competing with rivals like the Ford Bronco Sport. At launch, the Cherokee will feature Active Drive 1, a system that uses a power takeoff from the transverse hybrid powertrain to drive the rear axle on demand. It intelligently disconnects when not needed to reduce friction and save fuel, automatically re-engaging for increased traction. Instead of a center differential, clutch slippage manages front-rear binding in tighter turns. While a more focused Trailhawk off-road version with locking differentials is not available at launch, it is expected to arrive later. Active Drive 1 offers multiple modes: Auto, Sand, Snow, and Mud, with a variable front-rear torque split from 100/0 to 50/50. The minimum ground clearance is 8.0 inches, slightly less than the outgoing Cherokee’s 8.3–8.7 inches. However, its 19.6-degree approach angle is favorable compared to competitors, and its 29.4-degree departure angle ranks best in class, just shy of the previous Cherokee Trailhawk’s 32.2 degrees.

The 2026 Jeep Cherokee comes in four trim grades: Base, Laredo, Limited, and Overland. The Base model starts at $36,995, offering a well-equipped package with a standard roof rack, a 10.3-inch cluster display, a 12.3-inch infotainment screen, and a suite of standard safety features. The Laredo is priced at $39,995, followed by the Limited at $42,495, and the top-tier Overland at $45,995. The Limited and Overland trims are scheduled to go on sale in late 2025, with the Base and Laredo models following in early 2026. This pricing strategy places the Cherokee at a premium within the compact hybrid SUV segment. For comparison, it is notably close to the base Grand Cherokee Laredo A ($38,490) and more expensive than many direct competitors. The 2025 Toyota RAV4 Hybrid LE AWD, for instance, is $2,945 cheaper than the base Cherokee, and even the up-level RAV4 Limited is $3,640 less than a comparably equipped Cherokee. Similarly, the Kia Sportage S Hybrid is $2,960 cheaper, and the Sportage X-Line Hybrid undercuts the Cherokee Overland by a significant $9,060. While the 2026 Honda CR-V Sport Hybrid's entry-level price is $1,585 higher than the Cherokee, other CR-V hybrid trims like the TrailSport Hybrid are substantially cheaper than the Cherokee Overland. On average, the 2026 Jeep Cherokee Hybrid is priced about $3,827 higher than MotorTrend's top-three ranked small hybrid SUVs. This premium is partly due to the Cherokee's hybrid-only powertrain strategy, meaning there are no cheaper, non-hybrid entry-level options to align with competitors that still offer gasoline-only variants. Toyota’s 2026 RAV4 is also set to become all-hybrid, though its pricing is still awaited.