The 2026 GMC Terrain Gets Serious About Off-Road and Luxury

GMC’s smallest SUV finally gets the full treatment with two new trim levels that take this compact crossover in wildly different directions. After a complete redesign last year, Terrain now offers an AT4 model for weekend adventurers and a Denali variant for buyers who want their daily driver to feel special. But does adding more features fix what reviewers say is a pretty big problem under the hood?

• For 2026, Terrain adds AT4 and Denali trims, giving buyers off-road capability or luxury appointments depending on their needs.
• Every model uses the same 1.5-liter turbocharged four-cylinder engine making 175 horsepower, which multiple reviewers say feels underpowered for a vehicle approaching $40,000.
• Interior tech impresses with a 15-inch touchscreen and Google Built-In features, but the lack of Apple CarPlay might frustrate iPhone users.

Two New Ways to Spend Your Money

GMC took its time getting this lineup complete. Base Elevation trim arrived for 2025, and now the company adds two models that couldn’t be more different from each other. AT4 brings off-road gear like all-terrain tires, skid plates, and those signature red tow hooks up front. It sits about half an inch higher than the standard model and gets a special Terrain drive mode that mimics one-pedal driving at low speeds. Perfect for crawling over obstacles without riding the brake pedal.

Flip to the luxury side and you’ll find Denali, GMC’s answer to buyers who want heated rear seats and 19-inch wheels with their compact SUV. Denali gets a suspension tuned for comfort rather than trail duty, plus extra sound insulation and higher-quality interior materials. Both new trims come standard with all-wheel drive, though it’s the basic on-demand system you have to activate with a button rather than something that works automatically.

That Engine Situation Everyone Keeps Mentioning

Here’s where things get uncomfortable. Every 2026 Terrain uses the same 1.5-liter turbocharged four-cylinder. Front-wheel-drive models get a continuously variable transmission and make 184 lb-ft of torque. All-wheel-drive versions swap to an eight-speed automatic and bump torque to 203 lb-ft. Either way, you’re working with 175 horsepower to move a vehicle that weighs nearly 3,700 pounds.

Reviewers were pretty blunt about this. MotorTrend called it Terrain’s weak point, noting the powertrain “struggles to whisk nearly two tons of compact SUV up to speed.” Another tester said the engine feels gruff and sends more noise into the cabin than it should. GMC claims a 0-60 mph time of 7.9 seconds, but testers say it feels slower than that number suggests. When you’re paying $40,000 for AT4 or $42,000 for Denali, competitors like Honda CR-V and Nissan Rogue offer more power and smoother operation.

Tech Makes a Strong First Impression

Walk up to any 2026 Terrain at GMC Dealers and the interior will probably catch your attention. That massive 15-inch vertical touchscreen dominates the dashboard, paired with an 11-inch digital gauge cluster. Both screens are standard across the lineup, which is pretty generous for a vehicle starting around $30,000. Infotainment runs Google Built-In software with Maps, voice assistant, and downloadable apps. You can even use voice commands to control most vehicle settings.

Here’s the catch. No Apple CarPlay or Android Auto. GMC figures Google’s system does everything those features provide, and they’re probably right for Android users. iPhone owners might feel differently. Other available tech includes a 360-degree camera, rain-sensing wipers, wireless charging, and a Wi-Fi hotspot that can connect up to seven devices.

What AT4 Actually Does Off-Road

Let’s be realistic about AT4’s capabilities. You get General Grabber all-terrain tires, a front skid plate, underbody protection for the engine and transmission, and those red recovery hooks. Terrain drive mode slows throttle response and engages hill descent control. It’ll get you to the campsite and back without drama, handling mild trails and rough fire roads comfortably.

What you don’t get are locking differentials, disconnecting sway bars, or fancy camera views for rock crawling. AT4 sits in GMC’s lineup below Canyon AT4X and way below Sierra AT4X. It’s designed for people who occasionally take dirt roads to the lake, not for weekend warriors who mod their rigs and chase difficult trails. At $39,995, it competes with Nissan Rogue Rock Creek, which offers similar off-road features with more power for about $4,000 less.

Cargo Space Takes a Hit

One surprise came when testers started loading luggage. Terrain’s cargo area looks decent on paper, but testing in the real world showed it can’t match competitors like CR-V or RAV4 for actual storage capacity. Opening is also smaller, making it harder to load bulky items. Passenger space tells a better story though. Front seats offer plenty of adjustment, and back seats provide comfortable room for adults. Even taller drivers won’t feel cramped, and car seats install without the usual struggle.

Should You Wait for Something Better?

This 2026 Terrain does a lot right. It looks sharp with its boxy styling and upscale interior. Tech package punches above its price point. Both AT4 and Denali deliver on their specific promises, whether you want weekend adventure capability or daily luxury. But here’s the problem with that 1.5-liter engine, which reviewers consistently call out as Terrain’s weakest link. When similarly priced competitors offer more power, better fuel economy with hybrid options, and comparable features, that underpowered feeling becomes hard to ignore. Terrain makes a strong first impression, but test-drive it back-to-back with a CR-V or RAV4 before signing anything.