For most families, the 2027 Hyundai Palisade Hybrid is the better buy. Matched trim for trim at almost the same price, it has more standard features, the higher IIHS safety award and a powertrain warranty twice as long. Pick the 2027 Toyota Grand Highlander Hybrid if you need the most cargo space, an adult-size third row, a real spare tire or the best gas mileage. Our pick overall is the Palisade Hybrid SEL Premium with front-wheel drive at $47,920. If space comes first, the Grand Highlander Hybrid Limited at $53,410 is the one to see.
Key takeaways
- For most families, the Hyundai Palisade Hybrid is the better value: it wins all four of our price-matched rounds.
- The Toyota Grand Highlander Hybrid has more cargo space (97.5 vs 86.7 cu ft) and a roomier third row.
- The Grand Highlander Hybrid gets better EPA mileage: 34 vs 30 mpg combined with all-wheel drive.
- The Palisade has an IIHS Top Safety Pick+ and a 10-year/100,000-mile powertrain warranty.
Side by side
| 2027 Hyundai Palisade Hybrid SEL | 2027 Toyota Grand Highlander Hybrid LE | |
|---|---|---|
| Starting MSRP | $44,560 | $45,910 |
| Engine | 2.5L turbo 4-cylinder hybrid, 6-speed automatic | 2.5L 4-cylinder hybrid, CVT |
| Power | 329 hp | 245 hp |
| MPG (city / hwy / combined) | 33 / 35 / 34 (FWD) | 36 / 32 / 34 (AWD) |
| Drivetrain | FWD (AWD +$2,000) | AWD |
| Seats | 7 | 8 |
| Cargo behind 2nd row | 46.3 cu ft | 57.9 cu ft |
Prices checked in November 2026 on each maker's site. MSRP shown without destination charge, taxes or dealer fees.
Prices and trims
Both 3-row hybrids come in five trims, and price-matched they are never more than about $1,300 apart. Prices below are MSRP without the destination charge, which is $1,600 at Hyundai and $1,595 at Toyota.
| Hyundai Palisade Hybrid (FWD) | MSRP | Toyota Grand Highlander Hybrid | MSRP |
|---|---|---|---|
| SEL | $44,560 | LE AWD | $45,910 |
| SEL Premium | $47,920 | XLE FWD | $47,180 |
| Limited | $52,390 | Woodland AWD (new for 2027) | $51,780 |
| Calligraphy | $57,180 | Limited AWD | $53,410 |
| Calligraphy Black Ink | $57,680 | Hybrid MAX Platinum AWD | $60,475 |
All-wheel drive adds $2,000 on every Palisade Hybrid. The Grand Highlander Hybrid LE comes with all-wheel drive as standard, and the XLE is offered with front-wheel drive. This Palisade generation is new since 2026 and is the first Palisade sold as a hybrid. The 2027 Grand Highlander adds the Woodland Edition, with all-terrain tires and a cargo tray with pop-up dividers.
Gas mileage, power and towing
The Toyota wins on fuel. EPA combined ratings:
| Palisade Hybrid | Grand Highlander Hybrid | |
|---|---|---|
| Front-wheel drive | 34 mpg (SEL, SEL Premium) | 36 mpg (XLE) |
| All-wheel drive | 30 mpg | 34 mpg |
| Hybrid MAX (top trim) | not offered | 27 mpg |
With all-wheel drive, the EPA puts the Grand Highlander Hybrid about $250 a year lower on fuel, or about $1,250 over five years. Range is a tie: in their most efficient versions, both go about 620 miles on a tank. In independent testing, both came in a little under their ratings, and the Toyota kept its lead.
The Palisade fights back on power. Its 2.5-liter turbo four-cylinder hybrid with a 6-speed automatic makes 329 hp. The regular Grand Highlander Hybrid uses a 2.5-liter four-cylinder without a turbo and a CVT, for 245 hp. The Palisade tows 4,000 lb, the regular Toyota 3,500 lb. Only the Grand Highlander Hybrid MAX, with 362 hp, reaches 5,000 lb, and it drops to 27 mpg. One clever Palisade feature: Stay Mode runs the climate control and screens on the hybrid battery while you wait in the car.
Size, cargo and the third row
This is where the Grand Highlander pulls clearly ahead.
| Palisade Hybrid | Grand Highlander Hybrid | |
|---|---|---|
| Cargo behind 3rd row | 19.1 cu ft | 20.6 cu ft |
| Cargo behind 2nd row | 46.3 cu ft | 57.9 cu ft |
| Cargo, all seats folded | 86.7 cu ft | 97.5 cu ft |
| 2nd-row legroom | 41.4 in | 39.5 in |
| 3rd-row legroom | 32.1 in | 33.5 in |
| Ground clearance | 7.4 in | 8.0 in |
The Toyota is over two inches longer and about two and a half inches taller. Testers agree adults fit in its third row. The Palisade gives the second row about two inches more legroom and more comfort: heated and ventilated second-row seats from the SEL Premium, and heated third-row seats from the Limited, which no Grand Highlander lists.
Seating differs too. Every Palisade Hybrid comes with second-row captain's chairs and seven seats, with an 8-seat bench optional on most trims. The Grand Highlander Hybrid LE has a bench and eight seats, and captain's chairs are standard from the XLE.
One detail most buyers miss: every Grand Highlander Hybrid carries a temporary spare tire, while every Palisade Hybrid has a tire repair kit instead.
Cabin and features
Reviewers agree the Palisade cabin feels a class above. Every Palisade Hybrid has two 12.3-inch screens joined in one curved panel, a fully digital driver display, leather-look seats, heated front seats, a 15-watt cooled wireless charger and 100-watt USB-C ports in every row. The SEL Premium adds ventilated front seats, a heated steering wheel and driver's seat memory. The Calligraphy adds Nappa leather, a massaging driver's seat and front relaxation seats with a leg rest.
The Grand Highlander also has a 12.3-inch touchscreen on every trim, but the LE and XLE keep analog gauges with a 7-inch display, and the LE has cloth seats and no wireless charger. The XLE adds leather-look heated seats and, for 2027, a heated steering wheel. Ventilated front seats start at the Limited. The Toyota answers with seven USB-C ports and 13 cupholders. Both have wireless Apple CarPlay and Android Auto. Premium audio starts at the Limited on both: 14-speaker Bose in the Palisade, 11-speaker JBL in the Toyota.
Safety and driver assists
Both earn five stars overall in NHTSA crash tests. The Palisade has 10 airbags, the Grand Highlander 8. At the IIHS, the 2027 Palisade is a Top Safety Pick+ with Good headlights on every trim. The 2026 Grand Highlander has no award: its headlights and the driver's side small overlap front test were rated Acceptable. The 2027 Grand Highlander has not been rated yet.
Both have automatic emergency braking with pedestrian detection, adaptive cruise with stop and go, lane centering, blind-spot warning and rear cross-traffic alert on every trim. The Palisade adds a 360-degree camera and a blind-spot camera from the SEL Premium. On the Toyota, the 360-degree camera is optional on the Limited and standard only on the MAX Platinum. For car seats, the IIHS rates the Palisade's LATCH hardware Good+ and the Grand Highlander's Good.
How they drive
In independent tests, the Palisade Hybrid runs 0 to 60 mph in about 6.5 to 7.5 seconds and the regular Grand Highlander Hybrid in about 7.5 to 8. The Grand Highlander Hybrid MAX is the quickest of all at about 5.5 to 6 seconds. In one braking test from 70 mph, the Palisade stopped about 14 feet shorter. Cabin noise at 70 mph was within one decibel. Reviewers call the Palisade plush and refined, and the Grand Highlander smooth but dull to drive.
Warranty, recalls and resale
Hyundai covers the whole car for 5 years or 60,000 miles and the powertrain for 10 years or 100,000 miles for the first owner. Toyota covers 3 years or 36,000 miles and the powertrain for 5 years or 60,000 miles, but its hybrid battery warranty is longer (10 years or 150,000 miles, against 10 years or 100,000 at Hyundai), and ToyotaCare includes scheduled maintenance at the start.
The 2026 Palisade Hybrid has three recalls so far and the 2026 Grand Highlander Hybrid four. All are fixed free, so ask the dealer to confirm none are open. For resale, Kelley Blue Book named the Grand Highlander the Best Resale Value midsize SUV for 2026.
Four price-matched rounds
We matched each Palisade Hybrid with the Grand Highlander Hybrid closest in price, then scored standard features against five years of price plus EPA fuel cost. The better value in each round scores 100. Our method is on the How we research page.
| Round | Matchup | Price gap | Value score |
|---|---|---|---|
| 1. Entry, AWD | Palisade SEL vs Grand Highlander LE | Palisade $650 more | 100 vs 69 |
| 2. Best mpg, FWD | Palisade SEL Premium vs Grand Highlander XLE | Palisade $740 more | 100 vs 70 |
| 3. Limited, AWD | Palisade Limited vs Grand Highlander Limited | Palisade $980 more | 100 vs 95 |
| 4. Top trim, AWD | Palisade Calligraphy vs Grand Highlander MAX Platinum | Toyota $1,295 more | 100 vs 91 |
The Palisade wins all four, by the widest margin in round two. Round three is close, and it is the Grand Highlander we would choose if cargo space matters most. Our score does not count space, towing, crash tests or warranty, which is where the Toyota fights back.
Which one is right for you?
- Best gas mileage: Grand Highlander Hybrid XLE, 36 mpg combined.
- Most cargo space or adults in the third row: any Grand Highlander Hybrid.
- Most features for the money: Palisade Hybrid SEL Premium.
- Towing a camper: Grand Highlander Hybrid MAX, rated for 5,000 lb.
- Outdoors and dirt roads: Grand Highlander Hybrid Woodland, with all-terrain tires.
- Every luxury: Palisade Hybrid Calligraphy, with lounge seats and a built-in dash cam.
Want to see both SUVs part by part? Watch the full 20-minute comparison video above, and see all our car comparisons.
Sources
All figures checked in November 2026.
- 2027 Hyundai Palisade Hybrid prices and specs: hyundaiusa.com
- 2027 Toyota Grand Highlander prices: Toyota pressroom and Toyota price list
- Toyota Grand Highlander Hybrid specs: toyota.com
- EPA fuel economy: Palisade Hybrid FWD, Palisade Hybrid AWD, Grand Highlander Hybrid FWD, Grand Highlander Hybrid AWD, Grand Highlander Hybrid MAX (fueleconomy.gov)
- Crash tests: NHTSA · IIHS 2027 Hyundai Palisade · IIHS 2026 Toyota Grand Highlander
Buy the 2027 Hyundai Palisade Hybrid SEL Premium. At $47,920 with front-wheel drive it gets 34 mpg, ventilated seats in two rows, a sunroof and a 360-degree camera, and the Palisade beat the Grand Highlander in all four of our price-matched rounds. If you need the most cargo space or an adult-size third row, get the Toyota Grand Highlander Hybrid Limited at $53,410.
Common questions
Is the Toyota Grand Highlander Hybrid bigger than the Hyundai Palisade Hybrid?
Yes. The Grand Highlander is over two inches longer and about two and a half inches taller, holds 97.5 cu ft with all seats folded against 86.7 in the Palisade, and has more third-row legroom (33.5 vs 32.1 in). The Palisade has about two inches more second-row legroom.
Which gets better gas mileage, the Palisade Hybrid or the Grand Highlander Hybrid?
The Grand Highlander Hybrid. The EPA rates it at 36 mpg combined with front-wheel drive and 34 with all-wheel drive, against 34 and 30 for the Palisade Hybrid. With all-wheel drive that is about $250 a year less in fuel.
Does the Hyundai Palisade Hybrid have a spare tire?
No. Every Palisade Hybrid comes with a tire repair kit instead of a spare. Every Toyota Grand Highlander Hybrid has a temporary spare tire.
Which is safer, the Palisade or the Grand Highlander?
Both get five stars overall from NHTSA. The 2027 Hyundai Palisade is an IIHS Top Safety Pick+, while the 2026 Toyota Grand Highlander has no IIHS award because its headlights and one front crash test were rated Acceptable. The 2027 Grand Highlander has not been rated yet.
Which has the better warranty?
Hyundai, for most buyers: 5 years or 60,000 miles bumper to bumper and 10 years or 100,000 miles on the powertrain. Toyota covers 3 years or 36,000 miles and 5 years or 60,000 on the powertrain, but its hybrid battery warranty runs 10 years or 150,000 miles and ToyotaCare includes scheduled maintenance at the start.