2026 Hyundai Palisade vs. Toyota Grand Highlander: How Do These Midsize 3-Row SUVs Stack Up?

• Hyundai’s redesigned 2026 Palisade crossover will offer a hybrid powertrain for the first time alongside the gas-only model.
• The Toyota Grand Highlander three-row has not one but two available hybrid powertrains, with one more focused on efficiency and the other delivering plenty of power.
• Which of these midsize family haulers best suits your needs?

Engines and fuel economy

On the non-hybrid side of things, the 2026 Palisade will again use a naturally aspirated V6 engine and be backed by an eight-speed automatic transmission. Compared to the 3.8-liter V6 in the 2025 Palisade, the 2026’s 3.5-liter engine makes 4 fewer horsepower (287 hp vs. 291 hp) and 2 fewer lb-ft of torque (260 lb-ft vs. 262 lb-ft). Front-wheel drive will come standard, while all-wheel drive will be optional. Although we don’t have official fuel economy numbers for the 2026 model, we can use the current Palisade’s figures as a guide; the new model should meet or exceed the 2025’s ratings of 22 mpg combined with front-wheel drive and 21 mpg combined with all-wheel drive. 

The Grand Highlander goes a slightly different route, making use of a turbocharged 2.4-liter four-cylinder engine. It puts out a little less power than the Hyundai V6 (265 hp) but a lot more torque (310 lb-ft), which helps with acceleration both from a standstill and in highway passing. Like the Hyundai, the gas-only Toyota uses a conventional eight-speed automatic transmission, and front-wheel drive is standard with all-wheel drive available. Fuel efficiency closely matches what we expect from the 2026 Palisade, with front-wheel-drive Grand Highlanders returning 24 mpg combined and all-wheel-drive variants coming in at either 22 or 23 mpg combined, depending on trim.

Things get a little more interesting when comparing the new Palisade hybrid to both of Toyota’s gas-electric offerings. The Grand Highlander’s most efficient setup uses a 2.5-liter four-cylinder engine connected to a hybridized continuously variable automatic transmission, together generating 245 hp (Toyota doesn’t list a torque spec for this powertrain). All-wheel drive is standard, and combined fuel economy ranges from 33-36 mpg.

The more powerful Grand Highlander uses a powertrain dubbed Hybrid Max. It pairs a turbocharged 2.4-liter four-cylinder engine with a hybridized six-speed automatic transmission, putting out system totals of 362 hp and 400 lb-ft of torque. As with the lesser hybrid model, all-wheel drive comes standard here. Fuel economy takes a sizable hit with the extra power, coming in at 27 mpg combined, which is still ahead of the gas-only Grand Highlander.

Unlike Toyota, Hyundai will sell its three-row hybrid with a choice of front- or all-wheel drive. Output from the Palisade hybrid’s turbocharged 2.5-liter four-cylinder and electrified six-speed auto splits the difference between the two Toyota hybrids, with system totals of 329 hp and 339 lb-ft of torque. While Hyundai hasn’t shared fuel-economy specifics for this model yet, the automaker expects a highway rating of “30+” mpg — again somewhere between the two Toyotas — with a range target of 619 miles per tank. 

Interior

Both the Hyundai and the Toyota offer seating configurations for seven or eight people. Passenger space is pretty similar, although the Palisade has a slight edge in most head- and legroom comparisons. The Grand Highlander does offer slightly more third-row legroom — 33.5 inches versus 32.1 inches in the Hyundai — but that inch-plus won’t make a huge difference in what are relatively tight confines in both models.

The Toyota does have a noticeable advantage in cargo-carrying room. These two line up pretty closely in terms of space behind their third rows, but once you start folding seats down, the Grand Highlander’s cargo bay is a bit more grand. The Toyota has an advantage of more than 10 cubic feet when comparing space behind the front and second rows, which could make the difference on a long trip or a super-sized Costco run.

Technology and safety equipment

In a bit of spec serendipity, both of these midsize three-rows come with 12.3-inch center touchscreens running their brands’ respective operating systems. Both are compatible with wireless Apple CarPlay and Android Auto, and both offer fully digital gauge displays, also measuring 12.3 inches. The Hyundai comes standard with both an in-vehicle intercom system and a Rear Seat Quiet Mode, which mutes audio in the back for little ones trying to sleep.

The Hyundai and Toyota both come with plenty of safety and driver assist systems. Things like blind-spot warning and rear cross-traffic assist come standard, while Hyundai offers two versions of its Highway Driving Assist (adaptive cruise control and lane centering) and Toyota includes similar features in the standard Toyota Safety Sense 3.0 suite of technology.

Trims and pricing

Given its menu of three powertrains, the Grand Highlander covers a wide swath of pricing. The most basic version, a gas LE model with front-wheel drive, comes in at $42,310, including a $1,450 destination charge, while the all-wheel-drive-only Hybrid and Hybrid Max start at $45,660 and $56,140, respectively. The gas-only version is offered in LE, XLE, Limited, and Platinum trims, while the Grand Highlander Hybrid comes in LE, XLE, Limited, and Nightshade. The top-spec Hybrid Max comes only in the top Limited and Platinum trims.

Hyundai hasn’t shared pricing for the 2026 Palisade yet, but we expect it to come in somewhere slightly above the 2025 model, which goes for $38,675 including a $1,475 destination charge. The 2026 Palisade will be available in SE, SEL, SEL Premium, Blue SEL Premium, Limited, and Calligraphy trims, as well as the new, off-road-oriented XRT Pro.

You’ll have to wait for Hyundai’s pricing and fuel-economy info to determine which of these gas-only and hybrid three-row midsizers wins in those categories. But as things stand, the new Palisade and the Grand Highlander are pretty evenly matched. Your decision will likely come down to which powertrain style you prefer and whether you prioritize people space or cargo room.