2026 Hyundai Palisade Vs. 2026 Toyota Grand Highlander: What's the Best $60,000 Hybrid 3-Row SUV?

What SUV Shoppers Need to Know

• While there are more full-size three-row SUVs than ever, few are hybrids.
• Two of the available hybrid choices are the Hyundai Palisade, which offers one hybrid powertrain, and the Toyota Grand Highlander, which has two.
• This Toyota Grand Highlander Hybrid had the less powerful but more efficient 2.5-liter four-cylinder gas-electric powertrain in our test.
• After our traditional testing, which included judges’ subjective evaluations as well as cargo measurements, car-seat fitment testing, fuel-economy testing and value scoring, the Hyundai Palisade Hybrid emerged as our winner.

The three-row SUV has largely supplanted the minivan as today’s family hauler, but in the quest for more space for people and stuff, fuel efficiency can become a casualty. The Toyota Grand Highlander Hybrid and Hyundai Palisade Hybrid aim to buck that trend by offering shoppers room for seven or eight and 30-plus mpg. When a 2026 Hyundai Palisade Hybrid Calligraphy and a 2026 Toyota Grand Highlander Hybrid Nightshade arrived in our Chicago test fleet at the same time, we had to compare them — especially when their as-tested prices were separated by only a little more than $500.

Related: 2026 Hyundai Palisade Vs. 2026 Toyota Grand Highlander: Which Hybrid 3-Row SUV Gets the Best MPG?

Senior Road Test Editor Mike Hanley and I set out to put these two $60,000 hybrid SUVs through their paces just like we do in our larger comparison tests. Mike and I evaluated how each SUV drove on our testing route, poked around all three rows of seats, took them on a 200-mile trip to determine their real-world gas mileage, measured cargo areas, evaluated child-seat fitment and calculated value for the money.

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In the end, we preferred the Hyundai, which offers a compelling combination of efficiency, space and upscale features. That doesn’t mean the Grand Highlander Hybrid isn’t without its merits, however. Read on to see the full results and what we did and didn’t like about these vehicles, and check out the scoresheet below to see how they performed in the areas that matter most to you.

First Place: 2026 Hyundai Palisade Hybrid Calligraphy

• As-tested price: $60,625 (all prices include destination fee)
• Powertrain: 329-horsepower, turbocharged 2.5-liter four-cylinder gas-electric hybrid with six-speed automatic transmission; all-wheel drive
• Observed fuel economy (mpg): 30.3
• Cargo space behind second row (cubic feet): 23.6

The all-new 2026 Hyundai Palisade adds a hybrid version for the first time, and we’ve already declared it our preferred version of the Palisade. The top-of-the-line Calligraphy adds luxury and very-near-luxury touches to the interior, and it’s a great option if you want to be a baller on a budget. The powerful hybrid powertrain impresses, too. But is the Calligraphy … too nice?

What’s Good About the Palisade Hybrid?

• Plush interior: If you want to maximize the creature comforts in your next car but don’t want to spend six figures, you could do much worse than the Palisade Hybrid Calligraphy. “The Palisade Hybrid’s cabin could be straight out of a luxury SUV, with the Calligraphy offering first-rate materials that look great in the striking brown color palette,” according to Hanley. I may be the only staff member who likes massaging seats in cars, but this is one of the lowest-priced vehicles I’ve seen with a feature that’s guaranteed to make me say, “Hell yeah.”
• Pleasant road manners: The Hyundai is the more enjoyable to drive of the two, and despite its power advantage, we’re not talking about sportiness. The Palisade has better steering and braking feel, and a more composed ride. It’s quieter inside, too.
• Power to spare: That extra power does come in handy, though, when you’re trying to merge onto the highway or pass someone. “The Hyundai’s hybrid powertrain has more high-speed reserve power than the Grand Highlander Hybrid’s, and it feels a little more normal in operation thanks to its conventional automatic transmission,” Hanley reported.
• Even more room in the second row: The best seats in the Palisade might just be the second row, where there’s a ton of seat travel. If you’re not using the third-row seats, most adult passengers in the second row could stretch out to their heart’s content.

What’s Bad About the Palisade Hybrid?

• Control complaints: Hyundai placed the front climate controls in a touch-sensitive panel below the center touchscreen. It works as intended, but it’s harder to use than the Toyota’s physical controls, and the panel’s lower position on the dash makes the controls more difficult to use while driving. The ceiling-mounted second-row climate controls may be harder to reach for some, too.
• Too plush?: If your family is spill-prone or undertakes a lot of messy activities, the Calligraphy’s Nappa leather upholstery and otherwise upscale interior might not be for you.
• Interior design missteps: Both Mike and I were thrown off by certain aspects of the interior. For me, the nearly blank upper panels on the front doors look out of place in the otherwise-stylish cabin — even the rear doors have more to them. For Hanley, “the clearly fake wood trim on the front center console and elsewhere disrupts the otherwise upscale ambiance of the cabin.”

Research the 2026 Hyundai Palisade Hybrid | Search Inventory | Car Seat Check

Second Place: 2026 Toyota Grand Highlander Hybrid Nightshade

• As-tested price: $60,071
• Powertrain: 245-hp, 2.5-liter four-cylinder gas-electric hybrid with continuously variable automatic transmission; all-wheel drive
• Observed fuel economy (mpg): 33.2 (best in test)
• Cargo space behind second row (cubic feet): 26.0 (best in test)

Toyota actually offers two hybrid versions of the Grand Highlander; our test vehicle was the less powerful but more efficient hybrid variant versus the more powerful, turbocharged Hybrid Max. The Nightshade is the highest trim level available with this powertrain, with the Hybrid Max having a Platinum grade above it. Still, this Grand Highlander Hybrid had an as-tested price of more than $60,000.

The Grand Highlander’s gas mileage and roomy interior impressed, but driving-related shortcomings and low-grade cabin materials are tough to take at this price.

What’s Good About the Grand Highlander Hybrid?

• Spaciousness: “Good space in the first, second and third rows makes the Grand Highlander Hybrid a good minivan alternative whether your kids are small or big,” said Hanley. The best minivan is still a minivan, but if you can’t bear the thought, the Grand Highlander Hybrid makes a lot of sense.
• Visibility: And speaking of minivan mimicry, the Grand Highlander Hybrid has excellent outward visibility. I especially enjoyed its downward-sloping hood design that is very similar to that of a, you guessed it, minivan. There are electronic visual aids, as well, including an excellent 360-degree camera system.
• Physical controls: Toyota’s interior designers continue to keep it simple in the Grand Highlander Hybrid, and we thank them for it. “The climate system has physical controls positioned high on the center of the dashboard, making them easy to reach and use,” according to Hanley, and we liked that the second-row climate controls are placed on the back of the front center console, making them easier for shorter-armed passengers to reach.
• Thrifty on fuel: That the Grand Highlander Hybrid has all its spaciousness and people-hauling capability and can still return better gas mileage than much smaller cars is an engineering feat. With observed fuel economy of more than 33 mpg in our testing, the Toyota took the efficiency title.
• Responsive powertrain: Toyota’s familiar hybrid system is great around town, with immediate acceleration that makes this large SUV perform like a much more powerful vehicle.

What’s Bad About the Grand Highlander Hybrid?

• Price: If you told us the first digit of the Grand Highlander’s as-tested price was a 5 instead of a 6, we’d be a lot more comfortable with what you get for the money. The interior is bland and heavy on the hard plastic. According to Hanley, “The cabin isn’t nice enough for the price.” He’s right.
• Space for thee, but not for me: As roomy as the rest of the Grand Highlander Hybrid’s cabin is, Toyota seems to believe that the driver won’t need all that much. Both Hanley and I struggled to get comfortable, with our right knees constantly smacking the hard plastic of the wide front center console.
• Uncomposed ride: Over bumpy pavement, the Toyota is less composed than the Hyundai. And at highway speeds, I found that I was constantly needing to perform little steering corrections to keep the Grand Highlander Hybrid in its lane, making longer trips tiring.
• Growly powertrain: Toyota’s hybrid system makes a lot of noise when the engine is running; it’s tolerable, but at $60,000, we expected a bit more refinement under the hood.

Research the 2026 Toyota Grand Highlander Hybrid | Search Inventory | Car Seat Check

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