Hyundai Palisade vs Toyota Highlander

The Hyundai Palisade and Toyota Highlander have been two of the most cross-shopped three-row SUVs for years, but for 2027 they've gone in very different directions. The Palisade, redesigned for 2026, offers a choice of a V6 or a turbocharged hybrid. The 2027 Highlander is now fully electric. If you're shopping for one of the best Hyundai SUVs for families in Colorado Springs, here's how the two compare on price, space, towing, efficiency and everyday features.

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Hyundai Palisade front three-quarter exterior
Hyundai Palisade
Toyota Highlander front three-quarter exterior
Toyota Highlander

At a Glance

2027 Hyundai Palisade2027 Toyota Highlander
Powertrain3.5L V6 or 2.5L turbo hybridAll-electric
Horsepower287 hp (V6), 329 hp (hybrid)221 hp (FWD), 338 hp (AWD)
EfficiencyUp to 34 mpg combined (hybrid)Up to 320 miles of range (Toyota estimate)
Seating7 or 86 or 7
Cargo behind 3rd row19.1 cu ft15.9 cu ft
Max towingUp to 5,000 lbs (V6)Not yet announced
Starting MSRP$39,735Not yet announced
Powertrain warranty10 years / 100,000 miles5 years / 60,000 miles
The short version: The Highlander is now an electric-only SUV. The Palisade gives you the choice of a V6 or a hybrid, plus more seating, more cargo space, proven towing and a longer warranty.

Price and Trim Levels

The 2027 Hyundai Palisade starts at an MSRP of $39,735 for the SE and runs up to $57,680 for the Hybrid Calligraphy Black Ink. Gas trims include the SE, SEL, SEL Premium, Limited, XRT Pro and Calligraphy. Hybrid buyers can choose from the Hybrid Blue SEL, Hybrid SEL, Hybrid SEL Premium, Hybrid Limited, Hybrid Calligraphy and the new Hybrid Calligraphy Black Ink. See what's new for the year on our 2027 Hyundai Palisade page.

The 2027 Toyota Highlander comes in two trims, XLE and Limited. Toyota hasn't announced pricing yet, and the Highlander is expected to reach dealers in late 2026 or early 2027. With more than a dozen Palisade trims across two powertrains, it's easier to find a Palisade that fits your budget today.

Exterior and Styling

The Palisade's redesign gave it a bold, upright look with vertical LED lighting front and rear, a wide grille and squared-off body lines. The rugged XRT Pro adds a tougher look and all-wheel drive. Explore every trim and color on our Hyundai Palisade page. The Highlander takes a sleeker approach for its move to electric power, with a slim light bar across the nose, a lower roofline and 19-inch or 22-inch wheels.

Hyundai Palisade rear three-quarter exterior
Hyundai Palisade
Toyota Highlander rear three-quarter exterior
Toyota Highlander

Interior Design and Seating

The Palisade seats seven or eight depending on trim, and upper trims offer Nappa leather, ventilated seats and second-row captain's chairs. The Highlander seats six with standard captain's chairs, or seven with the optional bench on the XLE AWD. The Highlander's longer wheelbase adds legroom in the second and third rows, but the Palisade still offers the larger maximum seating count for bigger families.

Hyundai Palisade front cabin
Hyundai Palisade
Toyota Highlander front cabin
Toyota Highlander

Infotainment and Features

The Palisade pairs a 12.3-inch touchscreen with a 12.3-inch digital instrument cluster in one panoramic display. The Highlander has a 14-inch touchscreen and a 12.3-inch driver display. Both include smartphone integration and available premium audio, and the Highlander Limited adds a head-up display and self-parking.

Hyundai Palisade touchscreen
Hyundai Palisade
Toyota Highlander touchscreen
Toyota Highlander

Cargo Capacity

The Palisade has 19.1 cubic feet of space behind the third row and up to 86.7 cubic feet with the second and third rows folded. The Highlander offers 15.9 cubic feet behind the third row and 45.6 cubic feet with the third row folded. For ski gear, strollers or a week of camping supplies, the Palisade gives you more room to work with.

Towing Capacity

The Palisade with the 3.5L V6 tows up to 5,000 pounds when properly equipped, enough for a small camper or a boat headed to the reservoir. Toyota offers a towing package on the Highlander but hasn't published a towing capacity. If towing is part of your plans, the Palisade is the proven choice today.

Hyundai Palisade towing a boat on a lakeside highway

Drivetrain and Engine

The Palisade offers two powertrains. The 3.5L V6 makes 287 horsepower and 260 lb-ft of torque with an 8-speed automatic. The Palisade Hybrid's 2.5L turbocharged engine makes 329 horsepower and 339 lb-ft of torque. HTRAC all-wheel drive is available, and the turbocharged hybrid holds its power well at Colorado Springs' altitude.

The Highlander is all-electric. The front-wheel-drive XLE makes 221 horsepower, and all-wheel-drive models make 338 horsepower and 323 lb-ft of torque, using a 77 kWh or 95.8 kWh battery.

Want a three-row electric SUV with a Hyundai badge? Compare the Highlander with the Hyundai IONIQ 9, and see the EV tax incentives available in Colorado.

Performance, MPG and Range

The Palisade Hybrid Blue is EPA-rated at up to 34 mpg combined, and the V6 is rated at up to 22 mpg combined. You fill up in minutes and never plan around a charger, which matters on long drives across Colorado.

Toyota estimates the Highlander's range at 287 miles for FWD, 270 miles for AWD with the smaller battery and up to 320 miles with the larger battery. It uses the NACS charging port and can charge from 10% to 80% in about 30 minutes under ideal conditions. Like all EVs, its range will drop in cold weather, so winter driving and home charging access are worth considering.

Safety Features

Every Palisade includes Hyundai SmartSense, with automatic emergency braking, blind-spot monitoring, adaptive cruise control and parking sensors, and most trims add a Surround View Monitor. Every Highlander includes Toyota Safety Sense 4.0. Both offer advanced driver assistance across the lineup.

Warranty

Hyundai backs the Palisade with a 5-year/60,000-mile basic warranty and a 10-year/100,000-mile powertrain warranty. Toyota's standard coverage is 3 years/36,000 miles basic and 5 years/60,000 miles powertrain. Learn more about Hyundai warranty coverage and our exclusive 30-year/300,000-mile warranty.

Also comparing other three-row SUVs? See our Hyundai Palisade vs. Kia Telluride comparison.

Buy a New Hyundai Palisade

See every new Palisade in stock at Phil Long Hyundai of Chapel Hills, including the Palisade Hybrid, then schedule a test drive.

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Lease a Hyundai Palisade

Get a lower monthly payment and the option to upgrade when your term ends. Start with our finance center, or get an instant cash offer on your trade.

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Buy a Used Hyundai Palisade

Looking for more value? Browse our used inventory and certified pre-owned Hyundai vehicles for a Palisade that fits your budget.

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Frequently Asked Questions about the Hyundai Palisade vs. Toyota Highlander

No. The 2027 Highlander is all-electric. Toyota points gas and hybrid buyers to the larger Grand Highlander. The 2027 Hyundai Palisade offers both a 3.5L V6 and a turbocharged hybrid, so you can choose the powertrain that fits how you drive.

The Palisade seats up to eight and has more cargo space, with 19.1 cubic feet behind the third row compared with the Highlander's 15.9. The Highlander has a longer wheelbase, but it seats a maximum of seven.

The Palisade with the V6 tows up to 5,000 pounds when properly equipped. Toyota offers a towing package for the 2027 Highlander but hasn't announced its towing capacity.

The 2027 Palisade starts at an MSRP of $39,735 for the SE. Hybrid models start at $44,560, and the top Hybrid Calligraphy Black Ink starts at $57,680. Toyota hasn't announced pricing for the 2027 Highlander.

Yes. HTRAC all-wheel drive is available on both the V6 and the hybrid, and it's standard on the XRT Pro. It's a smart choice for snowy Colorado Springs winters and mountain driving.

The Palisade. Hyundai includes a 5-year/60,000-mile basic warranty and a 10-year/100,000-mile powertrain warranty, compared with Toyota's 3-year/36,000-mile basic and 5-year/60,000-mile powertrain coverage.

Pricing as of November 2026. MSRP excludes destination, taxes, title, license and dealer fees. Toyota Highlander range figures are Toyota estimates. Specifications are subject to change; see dealer for details.