When you compare the 2026 Hyundai Palisade vs 2026 Toyota Highlander, the choice comes down to what matters most to your family. Both three-row SUVs deliver solid performance and practical space, but one of them pulls ahead with a fresh redesign, a better warranty, and features you won’t find anywhere else in the segment.

• The redesigned 2026 Palisade offers a 287-hp V6 or an available 329-hp hybrid with an estimated 619-mile range and up to 34 combined mpg.
• A 10-year/100,000-mile powertrain warranty from Hyundai beats Toyota’s 5-year/60,000-mile coverage by a wide margin.
• Pricing starts at $38,935 for the Palisade, while the Highlander’s base price jumped to $45,270 after Toyota eliminated the entry-level LE trim for 2026.

What’s New for 2026

For 2026, Hyundai completely redesigned the Palisade for its second generation. The wheelbase is longer, dual curved 12.3-inch displays dominate the dash, and the exterior takes on a boxier look inspired by the brand’s flagship Ioniq 9 EV. Toyota’s Highlander carries forward with minimal changes. All-wheel drive now comes standard, but that update also eliminated the base LE trim.

Power and Efficiency

Under the hood, the Palisade packs a newly developed 3.5-liter V6 producing 287 horsepower, while the Highlander uses a turbocharged 2.4-liter four-cylinder making 265 horsepower. Both SUVs tow up to 5,000 pounds with their gas engines.

The hybrid comparison favors Hyundai by a wide margin. Its Palisade Hybrid pairs a turbocharged 2.5-liter engine with two electric motors for a combined 329 horsepower and an estimated 34 combined mpg. That setup can deliver up to 619 miles of range on a single tank. Toyota’s Highlander Hybrid manages 35 combined mpg but only produces 243 horsepower and limits towing to 3,500 pounds.

Interior Space and Features

Both SUVs seat seven or eight passengers, but the Palisade’s cabin feels more upscale. Opt for the Calligraphy trim and you get Genesis-level luxury with premium Nappa leather, a massaging driver’s seat, and power-adjustable second-row captain’s chairs. You’ll also find heated third-row seats with power recline, something almost unheard of in this class. Toyota’s interior is functional and well-organized, though third-row space remains tight and better suited for kids only.

A cool Palisade-exclusive feature is the built-in dual-camera dash cam on Calligraphy trims. It records continuously while driving and can automatically activate while parked if sensors detect movement nearby.

Safety and Technology

Both SUVs load up on driver-assistance features as standard equipment, including forward collision warning, automatic emergency braking, lane-keeping assist, and adaptive cruise control. The Palisade sweetens the deal with Navigation-Based Smart Cruise Control, Safe Exit Assist, and Parking Collision-Avoidance Assist. It also supports Hyundai Digital Key 2.0 Premium, letting you use a smartphone or smartwatch to lock, unlock, and start your vehicle.

Pricing and Warranty

This is where the Palisade really shines. Pricing starts at $38,935 for the base SE with front-wheel drive. Toyota’s Highlander jumped to $45,270 for 2026 after dropping the LE trim and making all-wheel drive standard. That’s a $6,335 difference right out of the gate.

Warranty coverage tells an even clearer story. Hyundai backs the Palisade with a 5-year/60,000-mile basic warranty and a 10-year/100,000-mile powertrain warranty for the original owner. Toyota offers 3 years/36,000 miles of basic coverage and 5 years/60,000 miles on the powertrain. For families planning to keep their SUV for the long haul, that extra protection matters.

The XRT Pro Goes Off-Road

Hyundai introduced something the Highlander can’t match: the XRT Pro trim. This rugged variant adds an electronic limited-slip rear differential, one inch of additional ground clearance, all-terrain tires, and dedicated terrain modes for mud, sand, and snow. Toyota offers Multi-Terrain Select on the Highlander, but there’s no comparable adventure-ready trim with hardware upgrades to match.

Which Three-Row SUV Should You Choose

For 2026, the Palisade delivers a fresher design, more power options, better features, and a lower starting price than the Highlander. Throw in Hyundai’s 10-year powertrain warranty and you’ve got a strong argument for family shoppers who want real value. Toyota’s Highlander remains reliable with the brand’s reputation behind it, but the redesigned Palisade has raised the bar for what a mid-size three-row SUV can offer.

See the Palisade in Person at Our Dealership

If you’re shopping for a three-row SUV in Richmond, KY, we’d love to help you see everything the 2026 Palisade has to offer. Gates Hyundai has been a family-owned dealership since 1915, and we’re now in our fourth generation of ownership. We’ve built our reputation on honest service and satisfied customers rather than gimmicks. Our team can walk you through the different Palisade trims, answer questions about the new hybrid option, and set up a test drive so you can experience that redesigned interior firsthand. Whether you’re comparing the Palisade to the competition or ready to make a decision, stop by and see us at 6000 Atwood Dr in Richmond to find out why local families have trusted us for over a century.

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