Jeep is making a notable return to the competitive compact crossover SUV segment with the all-new 2026 Cherokee Hybrid, following a three-year absence that echoes historical strategic missteps, such as Henry Ford's halt of Model T production to develop the Model A. This belated re-entry, however, arrives in a shifting societal and regulatory environment, potentially positioning the hybrid-only Cherokee for unique success. Stellantis, the parent company, is banking on this new model to appeal to a market increasingly leaning towards electrification.

The 2026 Jeep Cherokee marks a significant design departure from its 2023 predecessor. Design leader Vince Galante drew heavily from the iconic XJ-generation Jeep Cherokee, known for pioneering the unibody SUV segment. The new "KM Cherokee" embraces a boxier, more upright aesthetic, balancing homage to the original with modern aerodynamic requirements. 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. It features XJ-inspired trapezoidal wheel arches housing standard 18-inch and optional 20-inch wheels, and horizontal taillamps evocative of Jeep's jerrycan design. The upright D-pillar incorporates a Germanic Hofmeister kink, directly addressing a critical complaint of the outgoing KL Cherokee: insufficient cargo room, which has now increased by 25 percent.

A major transformation for the new Cherokee is its shift from Fiat-Chrysler’s Compact-Wide platform to Stellantis' STLA Large architecture. This move results in a substantial increase in dimensions, including a 6.1-inch overall length stretch and a 6.5-inch longer wheelbase, making it one of the largest vehicles in the compact class, sometimes blurring the lines into the small midsize segment. It is 1.5 inches wider and 0.3 inches shorter in height than before. The STLA Large platform, which also underpins battery-electric vehicles like the Jeep Wagoneer S, provides significant interior space improvements across nearly every dimension, enhancing its competitiveness against rivals such as the Honda CR-V, Ford Bronco Sport, Toyota RAV4, and Chevy Equinox. Higher trim levels, including the Overland, feature upgraded material quality, with options like perforated seat inserts and an "Arctic" interior color scheme.

For its launch, the 2026 Jeep Cherokee will be exclusively offered with an all-new hybrid powertrain. This system combines a 1.6-liter turbocharged four-cylinder engine with a two-motor planetary combiner hybrid system, storing energy in a 1.1-kWh lithium-ion (NCM) battery located under the rear passenger compartment. Notably, Stellantis is utilizing technology based on a Toyota-patented design, made royalty-free through 2030. The powertrain delivers a net total output of 210 horsepower and 230 lb-ft of torque, which subdivides the output of the previous 2.4-liter naturally aspirated and 2.0-liter turbocharged four-cylinder options. Despite its hybrid nature, the new Cherokee boasts a respectable 3,500-pound tow capacity, only 500 pounds shy of the old 2.0L turbo's rating.

Fuel efficiency marks a significant improvement over its predecessor. While official EPA numbers are pending, Jeep anticipates city/highway/combined ratings of 42/33/37 mpg, a substantial increase from the old model's 20–21/26–29/22–24 mpg. This efficiency, combined with a 13.7-gallon fuel tank, translates to an impressive estimated combined range of 507 miles, far exceeding the previous model's 348–379 miles. Jeep suggests that average American commuters could spend less than $100 per month on gas with the new Cherokee.

All-wheel drive is standard on all Cherokee models, featuring Active Drive 1, which utilizes a power takeoff from the transverse hybrid powertrain to drive the rear axle on demand. This system disconnects when not needed to minimize friction and save fuel, automatically re-engaging for improved traction. Active Drive 1 includes Auto, Sand, Snow, and Mud programs, with a front–rear torque split varying from 100/0 to 50/50. While a dedicated Trailhawk off-road version is not available at launch, it is expected to follow. The mainstream Cherokee offers an 8.0-inch minimum ground clearance, a 19.6-degree approach angle, an 18.8-degree breakover angle, and a class-leading 29.4-degree departure angle, proving it retains genuine SUV capabilities.

The 2026 Jeep Cherokee will be offered in several trim grades: Base, Laredo, Limited, and Overland. Pricing starts at $36,995 for the Base model, ranging up to $45,995 for the Overland. The top two trims (Limited and Overland) are scheduled for release late 2025, with the Base and Laredo models following in early 2026. This pricing strategy places the Cherokee at a premium compared to many compact hybrid SUV competitors. For instance, it is $2,945 more expensive than a base 2025 Toyota RAV4 Hybrid LE AWD and $2,960 pricier than a Kia Sportage Hybrid S. While it is not the most expensive outright in all comparisons (e.g., some Honda CR-V Hybrid trims can be more expensive), its hybrid-only offering means there are no cheaper gas-only alternatives like those found with competitors. Jeep appears to be banking on pent-up demand and its brand appeal to justify these higher price points within a highly competitive segment, although market dynamics might necessitate incentives or decontenting in the future.