Toyota Grand Highlander Hybrid vs Hyundai Palisade Hybrid

The 2026 Hyundai Palisade Hybrid was available in Canada in two trim levels: Luxury and Ultimate Calligraphy. These trims seamlessly integrated into the existing gas-only Palisade lineup, which included the Preferred Trend, the rugged XRT Pro, and the Ultimate Calligraphy. While the top trim was predictably more impressive, every Palisade trim exuded style and presence. The base Luxury trim came standard with 20-inch alloy wheels and featured a massive grille with horizontal slats, framed by LED projector headlights and a stack of five large LED daytime running lights. The Palisade's profile was enhanced by body-colour, heated side mirrors, and acoustic side glass on the front and rear windows. The rear view was equally striking, with wide-spaced letters spelling the vehicle's name below a large Hyundai emblem and stacks of five LED taillights wrapping around the rear corners. The exhaust was discreetly tucked away, hinting at the Palisade's focus on peaceful, efficient driving.

Inside, the 2026 Hyundai Palisade Hybrid impressed with its thoughtful design and craftsmanship. The base gas-only trims featured H-Tex synthetic leatherette upholstery, eight-way power adjustment for the driver's seat, and three-stage heating elements for the front seats. Higher trims offered additional features like four-way lumbar adjustment, seat ventilation, and integrated driver's seat memory settings. The Ultimate Calligraphy trim boasted luxurious Nappa leather upholstery. The interior design was a delight, with organic and natural shapes that felt carefully assembled. Compared to its competitors, the Palisade's storage solutions felt thoughtfully engineered, offering a richer sense of craftsmanship than other non-luxury crossovers.

The 2026 Toyota Grand Highlander Hybrid was offered with a standard turbocharged gas engine, a fuel-efficient hybrid powertrain, and a powerful turbocharged Hybrid Max configuration with full-time AWD and 362 horsepower. Trim levels in Canada included XLE, Limited, and Platinum Hybrid Max, with hybrid powertrain prices ranging from $57,465 to $69,060, including the destination charge. The top trim level, Platinum Hybrid Max, was evaluated for this review. It arrived in Storm Cloud paint, a flat greyish blue reminiscent of an approaching cold front. The styling of the Grand Highlander was conservative and familiar, drawing inspiration from the previous-generation RAV4. This design choice made sense, given the RAV4's popularity, resulting in a vehicle that looked and felt like a larger RAV4 with seating for up to eight and ample cargo space.

Inside, the Grand Highlander's interior emphasized function over form, with a layer of luxury in the Platinum trim. Glossy hard plastic and unlined storage surfaces explained the base model's impressive value. The controls were logically laid out with matte black surfaces and white iconography. The climate system was simple, with large temperature adjustment knobs, but the infotainment interface had a tiny volume knob and lacked a tuning knob. Despite these drawbacks, the Grand Highlander offered a comfortable and functional interior, with a focus on practicality and value.

The 2026 Hyundai Palisade Hybrid defied the stereotype of slow hybrids, offering a fun-to-drive experience for a family car. It featured a 2.5-litre turbocharged four-cylinder engine paired with two electric motors and a 1.65-kWh battery. The turbo-four engine alone produced 258 horsepower and 260 pound-feet of torque, surpassing the Grand Highlander's base hybrid engine. With the combined power of the electric motors, the Palisade delivered a total of 329 horsepower and 339 pound-feet of torque, ensuring it never lagged in performance. The advanced eight-speed automatic transmission and propulsion systems contributed to its impressive performance. The Palisade's hybrid system eliminated the old platform's starter motor and auxiliary belts, relying on a more capable electric motor connected directly to the engine. This setup optimized power distribution and handling, resulting in a smooth and efficient driving experience. Inside the cabin, noise and vibration were minimized, thanks to noise-absorbing carpet and acoustic glass. The steering was sharp and responsive, while the pedals felt slightly squishy, but overall, the Palisade offered a delightful driving experience.

The 2026 Toyota Grand Highlander Hybrid Max focused on performance with a side of efficiency. It featured a turbocharged 2.4-litre four-cylinder engine and electronic full-time AWD with two electric motors, producing 362 net horsepower. This powertrain allowed the Grand Highlander to accelerate quickly, with the traditional six-speed automatic transmission avoiding the droning common in CVTs. However, the Hybrid Max's higher price came with a fuel economy trade-off, with a combined rating of 8.8 L/100 km. During testing, it averaged 9.1 L/100 km on a 50:50 city and highway route and 10.1 L/100 km on a mountainous loop. The Hybrid Max's acceleration was rewarding, with the electric motors eliminating turbo lag. The ride quality was soft and isolating, but undulations in the road could cause vertical bounding and lateral rocking. Handling was secure up to a modest point, with early tire scrub and squeal. Outward visibility was excellent, aided by available cameras, but the front camera's frequent takeover of the infotainment screen was more annoying than helpful.

The 2026 Hyundai Palisade Hybrid offered 2,455 litres of total cargo capacity, trailing competitors like the Chevrolet Traverse, Toyota Grand Highlander, and Honda Pilot. However, it surpassed other three-row crossovers like the Ford Explorer, Nissan Pathfinder, and Mazda CX-90. The Palisade's second-row legroom was slightly compromised due to the battery's position, but it still offered more space than most competitors. The third row, while initially a standard-bearer, now trailed the Grand Highlander, Honda Pilot, and Ford Explorer in legroom and headroom. Despite these measurements, the Palisade's cabin was more comfortable, with dual-zone climate control, second-row HVAC controls, and multiple USB-C power outlets. The second row was spacious enough for adults, and the Palisade came standard with a second-row bench seat, with captain's chairs available on higher trims. The interior was filled with cubbies for smaller items, offering practical storage solutions.

The 2026 Toyota Grand Highlander Hybrid provided comfortable seating in all three rows, ample storage, and over 2,700 litres of maximum cargo space. However, many storage locations were unlined, potentially contributing to noise and vibration. The Platinum-trim test vehicle featured a Portobello interior with leather and artificial suede upholstery, adding a smart and upscale touch. The front and second-row seats offered heating, ventilation, and supportive cushions. The rear doors were long and required space to open, making it challenging to buckle a child into a safety seat. The second-row captain's chairs with a removable centre console created a pass-through for easy access to the third row. The rearmost seats were reasonably comfortable for adults and tall teens, with extra crush space for safety. Behind the third-row seat, the Grand Highlander offered 586 litres of cargo space, with compartmentalized storage underneath. Folding the third row provided 1,640 litres of cargo space, and folding the second row increased it to 2,761 litres, nearly matching the Sienna minivan's capacity.

The 2026 Hyundai Palisade Hybrid came well-equipped with a standard 12.3-inch touchscreen and a matching digital instrument cluster. While not oversized, the screen was a bit far from the passenger's seat. The infotainment system supported HD and Sirius XM satellite radio, wireless Android Auto, and wireless Apple CarPlay. The standard Driver Talk intercom system facilitated communication between rows. Most trims featured a 14-speaker Bose stereo, and a 15-watt wireless charging pad was standard, though it tended to overheat phones. The Ultimate Calligraphy trim included a built-in dashcam, recording front and rear views to an SD card. The Palisade also introduced "Stay Mode," allowing the climate control and infotainment system to run while the gas engine was off, provided the hybrid battery had sufficient charge.

The 2026 Toyota Grand Highlander Hybrid featured a 7-inch digital driver display in XLE trim, with Limited and Platinum trims offering a 12.3-inch digital instrumentation panel. All models had a 12.3-inch touchscreen infotainment system, tastefully integrated above a traditional climate control panel. The system included wireless Apple CarPlay, wireless Android Auto, SiriusXM satellite radio, and access to Apple Music and Amazon Music accounts. Toyota Connected Services plans offered features like automatic collision notification, SOS emergency response, and a digital voice assistant. The infotainment system was user-friendly, though it lacked the ability to display multiple main-menu screens simultaneously. The digital voice assistant responded accurately to commands, and the Platinum test car included features like a head-up display, digital rear-view mirror, and surround-view camera system. The JBL premium audio system delivered impressive sound quality.

The 2026 Hyundai Palisade Hybrid came standard with a suite of advanced driver assistance systems (ADAS), including blind-spot warning, rear cross-traffic assist, and automatic emergency braking with pedestrian and cyclist detection. The blind-view monitor, typically reserved for higher trims, was standard on the XRT Pro and up, including both hybrid trims. The rear doors featured a safe-exit alert indicator. During testing, the Palisade's ADAS tech performed flawlessly, even in challenging conditions. While the 2026 Palisade had not been crash-tested by the U.S. National Highway Safety Administration or the Insurance Institute for Highway Safety (IIHS) at the time of writing, the 2025 model received a Top Safety Pick rating from the IIHS.

The 2026 Toyota Grand Highlander Hybrid was equipped with Toyota Safety Sense 3.0 (TSS 3.0), offering a comprehensive suite of safety features and driver assistance technologies. The system included lane keep assist, adaptive cruise control, and Proactive Driving Assist (PDA), which automatically braked and steered to maintain safe distances. However, the PDA system was found to be irritating and was often turned off. The Grand Highlander's safety tech operated with accuracy, though the lane keep assist system occasionally strayed too close to lane markers. The camera system's frequent screen takeover was more annoying than helpful. The Grand Highlander earned a five-star overall rating from the U.S. National Highway Traffic Safety Administration (NHTSA) but fell short of the IIHS's Top Safety Pick rating due to "Acceptable" ratings for headlight performance and small overlap frontal-impact protection.