The 2025 Toyota Grand Highlander and the Hyundai PALISADE are popular with families hunting for roomy, well-equipped vehicles that can handle both daily school runs and weekend camping trips. Our Longo Toyota of Prosper team has compiled a guide to the Hyundai PALISADE vs. Toyota Grand Highlander matchup to make your decision easier.
Quick Comparison Overview
The Toyota Grand Highlander is the longest SUV in its class, giving Texas families ample usable space and cargo room. This extra length creates more room for all three rows and the biggest cargo area among midsize three-row SUVs, at 97.5 cubic feet. Toyota enhances this roominess by offering multiple engine options.
The Hyundai PALISADE takes a luxury-first approach with attractive interior materials and high-tech accessories. It’s a bit smaller than the Grand Highlander but still offers plenty of space. The PALISADE wins points with its comprehensive warranty, lower starting price, and attention to luxury details that make the cabin feel upscale.
These SUVs differ in terms of expected reliability, how much value they retain, and the total money you’ll spend during ownership.
Interior Space and Comfort Analysis
Space is one of the biggest considerations for families. The Grand Highlander is about 2 inches longer than the PALISADE, creating measurable cargo and roominess advantages.
First and Second Row Seating
The PALISADE features cloth, H-Tex- or leather-trimmed seats on lower trims, or full nappa leather seating on the Calligraphy trims. The Grand Highlander uses cloth on the XLE trim and offers Ultrasuede and leather combination materials on the Hybrid Limited and Hybrid MAX Platinum trims. The Grand Highlander’s wide, cushiony seats provide excellent support for long trips on Highway 380.
Front Seat Comfort and Adjustability
Both offer power seats with heating, cooling, and memory, depending on the trim. The PALISADE adds massage and extra adjustments, while the Grand Highlander focuses on seat cushioning that stays comfortable without active features. However, the PALISADE has more front legroom than the Grand Highlander, at 44.1 inches vs. 41.7 inches.
Second Row Versatility and Access
The PALISADE also has more second-row legroom, with 43 inches vs. 39.5 inches, and makes third-row access easier with its one-touch seat slide. The Grand Highlander offers captain’s chairs standard with a no-cost bench option.
Third Row Seating Comparison
The Grand Highlander’s length provides 33.5 inches of third-row legroom, compared to 32.1 inches in the PALISADE, making for truly usable adult seating with built-in cup holders and ample headroom.
Interior Materials and Build Quality
The PALISADE exudes a luxury feel through its use of soft surfaces, wood trim, and suede headliner. The Grand Highlander takes a more practical approach, prioritizing durability and easier cleanup for families.
Cargo Space and Storage Solutions
The Grand Highlander can carry more cargo: 20.6 cubic feet behind the third row vs. 19.1 for the PALISADE, 57.9 versus 46.3 behind the second row, and 97.5 vs. 86.7 maximum in the PALISADE, the most space in any midsize three-row SUV.
Performance and Powertrain Comparison
Engine choices mark the biggest difference; Toyota offers three options, while Hyundai gives you one.
Engine Options and Specifications
The Grand Highlander offers a base 2.4-liter turbo, a standard hybrid, and the Hybrid MAX, while the PALISADE uses one 3.5-liter V-6. Toyota’s Grand Highlander lineup lets families choose between efficiency and performance.
Powertrain Options for the Grand Highlander
The base turbo delivers 265 hp and 310 lb-ft of torque, more torque than the PALISADE’s V-6, and the hybrid achieves 243 hp and 36 mpg combined. The Hybrid MAX powertrain reaches 60 mph in 6.1 seconds while providing better fuel economy than the PALISADE.
Engine Performance in the Hyundai PALISADE
The 3.5-liter V-6 makes 287 hp and 260 lb-ft of torque, hitting 0-60 mph in 6.9 seconds with all-wheel drive (AWD). This naturally aspirated design will appeal to you if you want a conventional engine without the complexity of a turbo.
Driving Dynamics and Handling
Both prioritize comfort over sportiness. The Grand Highlander controls body lean better while the PALISADE focuses on luxury, measuring 52.8 decibels at 55 mph vs. the Grand Highlander’s 53.5 decibels. Our Longo Toyota team has a virtual test-drive tool that may help you experience the Grand Highlander’s handling.
Towing Capacity and Capability
Both tow up to 5,000 pounds. The Grand Highlander’s hybrid systems provide extra low-end torque, while the Hybrid MAX’s 400 lb-ft of torque outmuscles the PALISADE’s 260 lb-ft of torque on hills.
Fuel Economy and Efficiency
Gas mileage creates the biggest long-term cost difference. The Grand Highlander gets 21 mpg in the city/28 mpg on the highway vs. the PALISADE’s 19 mpg city/26 mpg highway. The hybrid achieves 36 mpg combined with the front-wheel-drive configuration and 34 mpg with AWD. Even the Hybrid MAX gets 27 mpg combined, 7 mpg better than the PALISADE’s 20 mpg combined.
Hybrid Options and Availability
Toyota’s hybrid lineup gives it a significant advantage since Hyundai’s promised hybrid remains unavailable. The Grand Highlander’s standard hybrid engine delivers 619 miles of range with proven reliability.
Long-Term Fuel Costs Analysis
The Hybrid MAX’s 7 mpg advantage means burning 130 fewer gallons yearly at 15,000 miles, saving $400-$500 annually.
Pricing and Value Proposition
The PALISADE starts at $37,200 MSRP for the SE vs. $40,860 for the Grand Highlander XLE. The Grand Highlander Platinum Hybrid MAX AWD begins at $58,775 vs. the PALISADE Calligraphy Night AWD at $54,500.
The PALISADE’s lower entry price helps families on a budget, while the Grand Highlander’s higher starting price includes hybrid power and larger dimensions. You’ll have to weigh the immediate savings against the long-term hybrid benefits.
Feature Content per Dollar
The Grand Highlander’s higher cost buys 75 more hp, better fuel economy, more cargo room, and Toyota’s reliability record. The PALISADE focuses on luxury touches, such as nappa leather and massage seats.
Incentives and Financing Options
Current deals vary by region, but you can check our offers online. The Grand Highlander’s strong demand might mean fewer rebates, while the PALISADE may offer better incentives. Superior resale value might create better lease terms despite higher pricing.
Which SUV Should You Choose?
The Grand Highlander could be right for families who want better predicted reliability, stronger resale value, maximum cargo space, and flexible hybrid options. Its class-leading 97.5 cubic feet of cargo room, multiple efficient engine choices, and Toyota’s proven track record make it the smart choice for families viewing their SUV as a long-term investment in reliable transportation rather than just a short-term purchase.
Experience the Grand Highlander at Longo Toyota of Prosper Today
If your Texas family is ready to see the Grand Highlander’s advantages firsthand, contact us to schedule a test drive at Longo Toyota of Prosper. You’ll see why so many families choose Toyota for their three-row SUV needs.


