GMC Terrain Denali (2026) Review: Clean Aesthetic, But Underpowered Throttle

GMC’s Denali nameplate represents the highest trim level and features the brand has to offer. It was originally introduced in 1998 for the GMC Yukon, but has now expanded to nearly all of their vehicles. The 2026 GMC Terrain has been redesigned, serving as an entry-level small SUV that also receives the Denali treatment for 2026.

GMC graciously provided me with a week of seat-time so I could drive the ’26 Terrain Denali and figure out how it performs. After driving the Terrain for nearly 1,300 miles in sunny, southern California, I definitely have some opinions. In short, luxury doesn’t make up for an underwhelming powertrain.

GMC’s competitiveness comes from offering a wide range of vehicle trims and models, backed by their attention to aesthetics. Normally, they should be commended for this. The Denali Terrain may come well-equipped, but that cannot make up for being frustratingly slow when it counts most.

Price as Reviewed: $45,310 as built (Monroney sticker PDF)

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Specs

• 1.5L Turbocharged 4-cylinder with Auto Stop/Start
• 175 horsepower @ 5800 rpm
• 203 lb-ft of torque (275 Nm) @ 2000–4000 rpm
• 8-speed automatic gearbox with manual shifting mode (towing)
• 2WD and AWD driving modes: Front suspension McPherson Strut with Smart Frequency Damper Technology, four-link independent rear suspension)
• 20-inch wheels (Denali edition only)
• 15.6 gal. / 59 liter fuel tank with 25 MPG city/highway (tested)
• 4850 lbs / 2200 kg weight
• 1500 lbs / 680 kg max towing capacity (with ball hitch)

Driving Experience

Let’s cut straight through the fluff — namely the technology and luxury aspects of this car — and first understand how it is to drive. The Denali Terrain’s excellent driver visibility, a solid turning radius for its size, and accurate steering are all part of what makes the Terrain enjoyable to drive, to a point. The unfortunate truth is that it suffers from an underpowered 175 horsepower powertrain.

Paired with an 8-speed transmission that struggles to get the grab onto the power that is available, the Denali Terrain is feels sluggish to drive from 60–85mph (i.e., highway speeds). You can feel that it struggles to sit comfortably at higher speeds. without requiring a heavy foot to maintain a typical commuter’s pace.

If I ever planned on overtaking anyone, I’d have to make sure I have enough space to smash the gas pedal. The Denali Terrain can take you almost anywhere on-road, but when it comes to its ability to pick-up-and-go, it’s going to take 5–7 seconds to feel it lurch forward in the seat. Personally, I would have preferred a V6 model or at least 200hp to make up for the relying on the turbocharger.

It’s also worth noting that the all-wheel drive and rear-wheel drive version of the Terrain receive the same eight-speed transmission, however, the AWD variant revs 500rpm higher, even on 2WD mode.

Regardless, even my passenger wondered if there was a larger engine option available. Unfortunately, no; the turbocharged 175hp four-banger is your only option.

Fuel Economy

During my test, I traveled around 1200 miles with the Denali Terrain over the course of a week. The tank averaged a modest 22.8mpg, traveling at 85mph for nearly 81 miles. Thankfully, I wasn’t filling it up constantly!

Considering the 15.6 gallon fuel tank nets you a total range of nearly 313 miles, it isn’t inadequate by any means and comparable with other small luxury SUVs in the segment.

Styling and Interior

Picking up the key and unlocking the doors is your first introduction to the fact that you’ve driving a Denali. The branding adorns the doorstep, 3D visuals, steering wheel, floor mats, and just about anywhere else GMC could squeeze the six letters it uses to represent class and luxury.

Overall, the Terrain Denali is not an uncomfortable place to be in. All five seats are plush yet supportive, with a soft leather feel.

As an added bonus, the front two seats benefit from cooling and heating elements, while the rear seats get heating and climate control with two vents. You could easily and comfortably transport 4 full-sized adults with room and storage to spare.

After all, sharing that middle seat is no fun for a fifth passenger is no fun, to be honest.

If there’s anything truly obvious about the interior, it’s the huge vertical touchscreen. While in some vehicles it completely replaces all core functions, GMC took the intelligent route and married core functions like volume, climate, and driving modes with both physical and on-screen controls.

It’s a fantastic touch that not only makes adjustments while driving feel safer (e.g.. Less distracting) but also less cumbersome.

If only the entire frame around the screen wasn’t piano black, because I found myself polishing it for obvious fingerprints every other trip.

While it is a near $1500 extra, the moonroof is my favorite add-on made to this particular press car. It makes for an amazing stargazing experience, or just allows you to enjoy a fair amount of sun and wind, without having to opt for a convertible.

The Highs and Lows

There are high and low points of the ’26 Terrain Denali to highlight. Let’s get through them quickly, by using lists.

Things that are exceptional, welcomed, or just plain old nice to experience while driving this car:

1. Good driver visibility (including over the hood), passenger comfort, and steering responsiveness.
2. The styling. It grew on me and I think it has an excellent stance. Look at that huge chrome grille.
3. The moonroof (while traditionally a part prone to failure) feels like an essential, because of the openness it helps the cabin achieve.
4. The Denali wheels and trim are a nice touch. I think they’re more classic and less gaudy, compared to other American luxury competitors.

Here are some of the lows. These are areas where the Terrain Denali was inconvenient, flawed, or just downright broken:

1. The infotainment system (based on Android Auto) is mostly broken. It often fails to register discrete touches and on four separate trips completely crashed to a black screen, taking my navigation offline while on the highway. This will need an over-the-air update to fix, as I was told by my press fleet rep.
2. The moonroof has three buttons. One to close/open the shade, another to tilt, and one more to slide open. This easily could have been condensed to two buttons or one multi-function button. Or, even give that function to the infotainment screen (when it works).
3. Transmission is woefully late to gear shifts and is paired to an underpowered engine.
4. The spare tire is not a full size.

Conclusion

Score: 6/10

At the end of every drive in the Terrain Denali, I often asked myself: “Would I like this car more if it were more powerful?”. Every time I turned away after completing the thought, I answered “yes”.

I believe GMC understands the variables that could make the Terrain a truly great small luxury SUV. Unfortunately, with their current selection of engines (especially those smaller than a V6 or V8) aren’t truly remarkable to drive or talk about.

If R&D was spent on creating new, engaging engines (with fitting transmissions!) meant for fuel-efficient, smaller vehicles then I’d be singing the praises of the Terrain Denali. This would be bolstered by the fact it is more cost-friendly upfront, by several thousand dollars, compared to similar cars from Great Britain and Japan.

Ultimately, a car review is about evaluating what is in front of you, rather than what could be. GMC has what could be a compelling offering that is cost-effective, but has an underpowered engine seen in much smaller family car.

For next year, GMC please give us more power, fix the Android Auto infotainment, and keep everything else — the interior, looks, tech package, and price — the same, because those are the aspects of the Terrain which are buttery smooth.