Compared: 2023 Toyota Highlander vs. 2023 Hyundai Palisade

Hyundai's upscale SUV duels with Toyota's midsize people-mover.

Benjamin Hunting | 

Apr 5, 2023 | 3 min read

Toyota | Hyundai

The 2023 Toyota Highlander and the 2023 Hyundai Palisade offer families capacious and comfortable transportation for up to eight riders across three rows of seating. Both SUVs also deliver respectable cargo capacity and come with a long list of safety and tech features.

The Palisade, however, received a refresh for the 2023 model year and now boasts a new look, a longer list of equipment, and improved crash safety. Here's how it stacks up against the popular Highlander when considering price, features, and fuel economy.

Toyota

2023 Toyota Highlander vs. 2023 Hyundai Palisade: Price

The 2023 Toyota Highlander is available in seven trim levels, starting with the roughly $38,000 entry-level L edition and scaling all the way up to the $51,000 Platinum. Each model features the same standard 2.4-liter, 265-hp turbocharged four-cylinder engine, along with front-wheel drive and an eight-speed automatic transmission. All-wheel drive ($1,600) is available across the board, while a 243-hp hybrid drivetrain (about $1,000) can be had in every trim level except the base L and the sport-oriented XSE models.

Hyundai

The base 2023 Hyundai Palisade SE (about $37,000) represents a more affordable choice when compared with the entry-level Highlander L. The Hyundai also comes with a more powerful standard 291-hp V6 engine, an eight-speed automatic transmission, and front-wheel drive. With five trim levels, the most expensive version of the Palisade is the Calligraphy edition, which is priced around $51,000.

Toyota

2023 Toyota Highlander vs. 2023 Hyundai Palisade: Features

The Palisade is finished in more luxurious-looking materials than the Highlander both inside and out. This is especially true when comparing the Palisade’s Calligraphy trim against the Highlander Platinum.

Hyundai

The Hyundai SUV's priciest trim comes with its own upscale styling cues as well as Nappa leather upholstery and a full list of comforts (including the availability of third-row heated seats). The Highlander Platinum is more subdued in appearance, making it harder to pick out of a crowd, and its cabin tends toward average rather than outstanding.

It’s also worth noting that the Palisade has better leg room in the first two rows than the Highlander, as well as more cargo space between the third row seatback and the hatch (18 cubic feet versus 16 cubic feet). Total cargo storage is also slightly greater for the Hyundai.

Toyota

2023 Toyota Highlander vs. 2023 Hyundai Palisade: Fuel Economy

The Highlander pulls ahead of the Palisade when it comes to estimated fuel economy. Front-wheel-drive versions of the Highlander boast 25 mpg combined, while the hybrid model pumps that up to an eco-friendly 36 mpg. Adding all-wheel drive knocks a single mpg from the figure for both the gas-only and hybrid models.

Hyundai

The Palisade is thirstier, delivering 22 mpg combined for front-wheel-drive models and 21 mpg with all-wheel drive. That’s a full 3 mpg below the Highlander and 14 mpg behind the Highlander Hybrid.

Benjamin Hunting

Benjamin Hunting is a writer and podcast host who contributes to a number of newspapers, automotive magazines, and online publications. More than a decade into his career, he enjoys keeping the shiny side up during track days and always has one too many classic vehicle projects partially disassembled in his garage at any given time. Remember, if it's not leaking, it's probably empty.