Grand Highlander vs Telluride vs Palisade
If your priority is a third row adults can use and the best hybrid mileage with all-wheel drive, the Toyota Grand Highlander leads this group. Its Hybrid with available AWD is rated up to 34 mpg combined by the EPA (by trim), against up to 31 for the Kia Telluride Hybrid AWD and up to 29 for the Hyundai Palisade Hybrid AWD (fueleconomy.gov), and its third row has 33.5 inches of legroom against 32.1 in both rivals. The Telluride and Palisade answer with lower gas starting prices and more towing than the standard Grand Highlander Hybrid, although the Hybrid MAX tows up to 5,000 lb.
All three are new or nearly new designs. Kia skipped the 2026 Telluride and went straight to an all-new 2027 with its first hybrid, and Hyundai launched a new-generation 2026 Palisade with a hybrid for the first time. So this is the first year you can compare three 3-row hybrids from three brands head to head.
The comparison table
Figures below are for the 2026 Grand Highlander, the 2027 Telluride and the 2026 Palisade, from each manufacturer and the EPA. Hyundai has also priced a 2027 Palisade, from $39,735 for gas and $44,560 for the hybrid before destination.
| Grand Highlander | Kia Telluride 2027 | Hyundai Palisade | |
|---|---|---|---|
| Starting MSRP, gas | $42,260 | $39,190 | $39,435 |
| Starting MSRP, hybrid | $45,610 (AWD) | $46,490 (FWD) | $44,160 (FWD) |
| Destination | $1,595 | $1,545 | $1,600 |
| Hybrid AWD, up to combined mpg | 34 | 31 | 29 |
| Hybrid FWD, up to combined mpg | 36 | 35 | 34 |
| Third-row legroom | 33.5 in | 32.1 in | 32.1 in |
| Cargo behind the third row | 20.6 cu ft | 22.3 cu ft* | 19.1 cu ft |
| Hybrid towing (Grand Highlander: 2.5L Hybrid) | 3,500 lb | 4,500 lb | 4,000 lb |
*Kia’s figure adds the space under the cargo floor; the Telluride Hybrid lists 21.3 cu ft. Grand Highlander figures are for the 2.5L Hybrid, by trim.
Read the table by what you will actually use. A family that fills every seat and drives in city traffic will feel the third row and the hybrid mpg every week. A family that tows a boat twice a summer will care more about the towing line.
The rivals start lower on gas price
On gas models, the Grand Highlander costs more to start. The Telluride begins at $39,190 (Kia) and the Palisade at $39,435 (Hyundai), which is $3,070 and $2,825 below the Grand Highlander LE at $42,260.
The picture changes on the hybrids. The cheapest Grand Highlander Hybrid, the LE with AWD, starts at $45,610, while the cheapest Telluride Hybrid is front-wheel drive at $46,490, and the cheapest Palisade Hybrid is front-wheel drive at $44,160. If you want a hybrid with all-wheel drive, the Grand Highlander is the lower-priced way in. The Palisade Hybrid with AWD starts at $46,160 and the Telluride Hybrid with AWD at $48,490 (Kia). Compare the exact trims you are considering, since equipment differs a lot between them.
Fuel economy, where the Grand Highlander pulls ahead
This is where the Grand Highlander pulls ahead. Its Hybrid AWD is rated up to 34 mpg combined, three more than the Telluride and five more than the Palisade. In city driving the gap matters even more, because the Grand Highlander Hybrid AWD is rated up to 36 mpg in the city.
Over a year of New York traffic, five mpg is not a rounding error. At 12,000 miles a year and $3.50 a gallon, up to 34 mpg instead of 29 works out to roughly $210 a year in fuel, and the difference grows the more city miles you drive. If you want more power instead, the Grand Highlander Hybrid MAX makes 362 horsepower against 329 for the Telluride Hybrid, and is rated 27 mpg combined by the EPA.
Third-row room versus cargo space
The Grand Highlander has the roomiest third row of the three, with 33.5 inches of legroom. The Telluride and Palisade both list 32.1 inches. Nearly an inch and a half (1.4 inches) sounds small on paper, but it is the difference between knees against the seat back and a comfortable ride for an adult.
Behind the third row, the Telluride has the most space if you count its underfloor bin, the Grand Highlander sits in the middle at 20.6 cubic feet, and the Palisade has 19.1. None of them matches a minivan, so if cargo is everything, look at a Sienna as well.
Safety ratings, in plain terms
The 2026 Grand Highlander has a 5-Star Overall Safety Rating (NHTSA) (NHTSA). The IIHS 2026 Top Safety Pick+ list includes the 2027 Telluride (built after June 2026) and the 2026 Palisade (built after November 2025).
If crash-test awards weigh heavily in your decision, read the full reports on nhtsa.gov and iihs.org for each model you are considering. The two programs run different tests, and the details matter more than the badges.
Which one should you buy?
Here is our honest read.
- Grand Highlander if you fill the third row with adults or teenagers, you want a hybrid with AWD, and you want the best mileage of the three.
- Telluride if you want the lowest gas starting price and more towing than the standard Grand Highlander Hybrid, and you are fine with a first-year redesign.
- Palisade if you want a new design with strong tech at a lower gas price, and you mostly drive front-wheel drive.
Every one of these is a good family SUV. The Grand Highlander is the one we sell, so take our view with that in mind and test drive all three. We are confident about where it lands once you sit in the back row. For a closer look at the Toyota side, see our Grand Highlander vs Highlander guide.
Frequently asked questions
Is the Grand Highlander bigger than the Telluride? It has more third-row legroom (33.5 vs 32.1 inches). The Telluride lists more cargo behind the third row when you include its underfloor space.
Why is Kia skipping the 2026 Telluride? Kia moved directly to an all-new 2027 Telluride, a new generation that added the first Telluride hybrid. It went on sale in March 2026.
Which has the best hybrid mpg? The Grand Highlander Hybrid, at up to 36 mpg combined with FWD and up to 34 with AWD, according to EPA estimates.
Which can tow the most? Among the hybrids, the Grand Highlander Hybrid MAX tows up to 5,000 lb, ahead of the Telluride Hybrid at 4,500 lb and the Palisade Hybrid at 4,000 lb. The standard Grand Highlander Hybrid is rated 3,500 lb.
Starting MSRP excludes destination, taxes, title, license and dealer fees; dealer sets final price. Fuel economy figures are EPA estimates, actual mileage will vary. Rival data from Kia America, Hyundai Motor America, fueleconomy.gov and iihs.org, checked November 2026.