Hyundai Palisade vs Toyota Grand Highlander Hybrid

The 2026 Hyundai Palisade underwent significant design changes while maintaining its recognizable identity. It featured a more upright and squared-off profile, with a bold front lighting design that included rectangular slashes flanking a massive grille, giving it a distinctive appearance. Inside, the Palisade's interior was softened with flowing shapes and simple lines reminiscent of mid-century modern furniture, creating a refined and relaxing atmosphere. The high-quality materials and texture variance in the top-spec Palisade Ultimate Calligraphy model added to its appeal, while the off-road-oriented Palisade XRT Pro offered durable materials. The 2026 Palisade was longer and had a stretched wheelbase, accommodating seven or eight passengers depending on the configuration.

In contrast, the 2026 Toyota Grand Highlander Hybrid pursued a conservative and familiar design, drawing inspiration from the previous-generation RAV4. This approach resulted in a vehicle that resembled a larger RAV4 with seating for up to eight and ample cargo space. The interior emphasized function over form, with a layer of luxury in the Platinum trim. While the material quality was decent, the glossy hard plastic and unlined storage surfaces explained the impressive value of the base model. The climate system was simple and user-friendly, but the infotainment interface had some drawbacks, such as a small volume knob and the absence of a tuning knob.

The 2026 Hyundai Palisade was powered by a 3.5-litre V6 engine producing 287 horsepower and 260 pound-feet of torque. While it made slightly less power than the previous 3.8-litre V6, it remained competitive with its rivals. The eight-speed automatic transmission and standard all-wheel drive in Canada provided a refined driving experience. The Palisade's suspension offered a comfortable ride, and the brakes were upgraded for shorter stopping distances. It had a towing capacity of 2,268 kilograms (5,000 pounds) and featured Hyundai's HTRAC AWD system with various driving modes. The Palisade XRT Pro received off-road enhancements, including increased ground clearance and improved approach and departure angles. Additionally, a hybrid powertrain option was available, delivering a total system output of 329 horsepower and 339 pound-feet of torque.

The 2026 Toyota Grand Highlander Hybrid Max focused on performance with a turbocharged 2.4-litre four-cylinder engine and electronic full-time AWD, producing 362 net horsepower. It offered satisfying acceleration and a traditional six-speed automatic transmission, avoiding the droning of CVTs. While the Hybrid Max had a higher price and slightly lower fuel efficiency, it could tow up to 2,268 kilograms (5,000 pounds). During testing, it achieved fuel economy in the mid-9s. The Hybrid Max provided rewarding acceleration, and its ride quality was soft and isolating. However, handling was secure only up to a modest point, with early tire scrub and squeal. The Grand Highlander offered excellent outward visibility, but the front camera's frequent takeover of the infotainment screen was a drawback.

The 2026 Hyundai Palisade offered a spacious interior with captain's chairs in the middle row and comfortable third-row seats. Passengers had access to USB-C charging ports, cupholders, and air vents. The climate-control system was enlarged to match the interior's proportions. The Palisade allowed for flexible passenger and cargo space with sliding second- and third-row seats. Heated and ventilated seats were standard in Canada, with additional features in higher trims. The Palisade provided up to 540 litres of cargo space with the third row forward, and a maximum of 2,455 litres behind the front seats.

The 2026 Toyota Grand Highlander Hybrid offered comfortable seating in all three rows and more than 2,700 litres of maximum cargo space. However, unlined storage locations contributed to noise and vibration. The Platinum-trim test vehicle featured a Portobello interior with leather and artificial suede upholstery. The front and second-row seats had heating, ventilation, and supportive cushions. The Grand Highlander had second-row captain's chairs with a removable centre console, creating a pass-through to the third row. It offered 586 litres of cargo space behind the third row and a maximum of 2,761 litres with the second row folded.

The 2026 Hyundai Palisade featured a 12.3-inch digital instrument cluster and a 12.3-inch colour touchscreen for infotainment. It offered wireless Apple CarPlay and Android Auto, onboard navigation, and a 12-inch colour head-up display in the Ultimate Calligraphy model. The Palisade included a surround view monitor camera system, integrated dashcams, an in-car intercom, and a UV-light cleaning system. The Bose audio system provided excellent sound quality and was standard on higher trims.

The 2026 Toyota Grand Highlander Hybrid had a 12.3-inch touchscreen infotainment system with wireless Apple CarPlay, Android Auto, SiriusXM, and access to Apple Music and Amazon Music accounts. It offered Toyota Connected Services plans with features like automatic collision notification and a digital voice assistant. The infotainment system was easy to use, but the inability to see two main-menu screens simultaneously was a drawback. The Platinum test car included a colour head-up display, a digital rear-view mirror, and a JBL premium audio system.

The 2026 Hyundai Palisade offered a comprehensive suite of driver-assist features, including blind-spot monitoring, rear cross-traffic alert, forward collision warning, automatic emergency braking, lane keep assist, and more. The Ultimate Calligraphy model added evasive steering assist and an upgraded Highway Driving Assist II system. While the Palisade hadn't received safety ratings from NHTSA or IIHS, the previous version performed well.

The 2026 Toyota Grand Highlander Hybrid came with Toyota Safety Sense 3.0, offering a range of standard safety features and driver assistance technologies. It included lane keep assist, adaptive cruise control, and Proactive Driving Assist. The Grand Highlander received a five-star overall rating from NHTSA but fell short of the IIHS Top Safety Pick rating due to headlight performance and small overlap frontal-impact protection.