Toyota Highlander Hybrid vs Hyundai Palisade Hybrid

The 2023 Toyota Highlander Hybrid was priced at just over $50,000 for the base Hybrid LE, with the Limited trim reaching $61,800 in Canada. It featured minimal appearance changes, with a new Cypress Green paint option. The design was considered over-styled, with exaggerated forms and a lack of subtlety both inside and out. The interior was criticized for its mismatched textures, reflections, and a lack of quality in primary controls. Despite these drawbacks, the Highlander Hybrid was noted for its quiet ride on the road.

In contrast, the 2026 Hyundai Palisade Hybrid was available in two trims: Luxury and Ultimate Calligraphy. It was praised for its stylish presence, with a massive grille and LED lighting. The interior was described as thoughtfully designed, with organic shapes and a sense of craftsmanship. The Palisade offered a more comfortable cabin with features like H-Tex synthetic leatherette upholstery and Nappa leather in higher trims. Overall, the Palisade was seen as a more refined and well-crafted vehicle compared to the Highlander.

The 2023 Toyota Highlander Hybrid combined a 2.5-litre Atkinson-cycle four-cylinder engine with two electric motor-generators, producing 243 combined horsepower. It offered standard AWD and a Predictive Efficient Drive system to maximize fuel efficiency. However, the Highlander Hybrid was criticized for its lack of high-speed passing power and towing capability. The driving experience was described as uninspiring, with soft suspension tuning and a CVT that contributed to a lack of engagement.

The 2026 Hyundai Palisade Hybrid, on the other hand, featured a 2.5-litre turbocharged four-cylinder engine paired with two electric motors, delivering a total of 329 horsepower and 339 pound-feet of torque. It was equipped with an advanced eight-speed automatic transmission and a next-generation hybrid system. The Palisade Hybrid was praised for its impressive performance, with sharp steering and a quiet cabin. The hybrid system optimized power distribution and contributed to a more engaging driving experience.

The 2023 Toyota Highlander Hybrid offered seating for seven or eight, with standard second-row captain’s chairs. The third-row seat was best suited for occasional use, and the interior featured three-zone automatic climate control and heated front seats. However, the Highlander’s storage areas were criticized for being unlined, and the centre armrest storage console was deemed unnecessarily complex. Cargo space was generous, with a maximum of 2,387 litres when the second-row seats were folded.

The 2026 Hyundai Palisade Hybrid provided 2,455 litres of total cargo capacity, trailing some competitors but offering more than others. The second-row legroom was slightly compromised due to the battery’s position, but the cabin was described as comfortable and well-equipped. The Palisade Hybrid featured dual-zone climate control, multiple USB-C power outlets, and a variety of storage cubbies. The interior was praised for its thoughtful design and spaciousness.

The 2023 Toyota Highlander Hybrid introduced new technology, including a 12.3-inch digital instrumentation display and Toyota Audio Multimedia infotainment systems. The Limited trim featured a 12.3-inch display with wireless Apple CarPlay and Android Auto. However, the controls were not intuitive, and the graphics lacked contrast. The Drive Connect service plan offered additional features, but the JBL sound system was only moderately impressive.

The 2026 Hyundai Palisade Hybrid came with a standard 12.3-inch touchscreen and digital instrument cluster. It supported HD and Sirius XM satellite radio, wireless Android Auto, and Apple CarPlay. The Palisade Hybrid also featured a Driver Talk intercom system and a 14-speaker Bose stereo in higher trims. A built-in dashcam was available on the Ultimate Calligraphy trim, and the Stay Mode allowed the use of climate control and infotainment while the engine was off.

The 2023 Toyota Highlander Hybrid was equipped with Toyota Safety Sense 2.5+, including adaptive cruise control, forward collision warning, and lane-keeping assist. Blind-spot monitoring and rear cross-traffic alert were standard, with additional features on higher trims. The Highlander Hybrid received excellent crash-test ratings from both the IIHS and NHTSA.

The 2026 Hyundai Palisade Hybrid featured a comprehensive suite of ADAS, including blind-spot warning, rear cross-traffic assist, and automatic emergency braking. The blind-view monitor was standard on higher trims, and the rear doors had a safe-exit alert indicator. While crash-test ratings for the 2026 model were not available, the 2025 Palisade received a Top Safety Pick rating from the IIHS.