Family SUVs don’t get much more competitive than the 2024/2025 Hyundai Palisade and 2024/2025 Toyota Highlander. Both are big on space and comfort, but while the Palisade leans on style and tech, the Highlander counters with efficiency and Toyota’s reputation for reliability.
Toyota Highlander: The Performance and Handling Winner
There’s no shortage of three-row SUVs on sale and it’s soon becoming the go-to choice of families for kinder-schlepping duties. The Toyota Highlander is easily one of the most popular and for good reason. With Toyota’s reputation for reliability and its fuel-sipping hybrid powertrains, it remains an economical and efficient choice.
The Hyundai Palisade is also very popular with families and is in very high demand. With 291 hp, the Palisade’s V6 makes more power than either of the four-cylinder powerplants offered in the Highlander and is smoother and sounds better. The base 4-cylinder gets the large Highlander moving fairly well, but it’s the fuel-efficient hybrid that’s the real star here. Expect to register under 8L/100 km with the Highlander Hybrid under regular mixed driving. Both these large SUVs handle reasonably well for their size. The Palisade is slightly more refined but it doesn’t offer a hybrid option and the Highlanders stellar fuel consumption is hard to ignore.
Related – Hyundai Palisade vs. Kia Telluride: A Clash of Comfort and Style
Hyundai Palisade: The Interior Winner
At first glance, the Palisade’s cabin can seem like it belongs in a higher class than it sits in. Nappa leather, rich-feeling touch points and controls, and real buttons for all the important functions mean the Palisades interior is as usable and versatile as it is refined. Bonus points also go to the Palisade for a better infotainment system and fully digital gauge cluster which is only offered on the top trim of the Highlander.
Not to count the Highlander out, it’s also a refined space with a dashboard covered in a soft cushioned material and a handy shelf that runs its length. Toyota also uses real buttons and its infotainment while not quite as good as the system in the Hyundai is easy to use.
As a mid-size family SUV, the Palisade fares better with a much more usable third row that could even work for adults. While you could squeeze in the back of the Toyota, those with longer legs will not be comfortable for long.
Hyundai Palisade: The Styling Winner
Styling being the subjective animal that it is either of these could be appealing depending on how you look at it. The Palisade’s styling is more cutting edge with hidden daytime running lights and a large prominent grille. The Highlander is more curvaceous with a highly defined character line but ultimately looks more pedestrian and more like it was designed to blend in without drawing too much attention to itself. Trendier designs like the Palisade’s tend not to age as well, but we still think it looks better than the Highlander right now.
Takeaway: Why the Toyota Highlander is the Better Buy
The Palisade wins in the styling and technology departments and if those criteria are high on your priority list, then the choice is easy. The Highlander comes out on top of the Palisade for us for two reasons. It’s slightly cheaper, and the hybrid option is an efficiency game-changer when it comes to large all-wheel drive family SUVs. While the Palisade offers the more usable third row, it’s not something that most families will need on a regular basis and the Highlander Hybrid’s everyday efficiency gives it the win.
