The three-row SUV market has become one of the most competitive parts of the automotive industry. Buyers want the space of a large SUV without the size, fuel consumption, and driving compromises that often come with a full-size model.
The Kia Telluride, Hyundai Palisade, and Toyota Grand Highlander all target that buyer, but they take noticeably different approaches.
For the 2027 model year, the Kia Telluride enters a new generation with a turbocharged 2.5-liter four-cylinder producing 274 horsepower and 311 lb-ft of torque. It can tow up to 5,000 pounds, seats up to eight, and offers available all-wheel drive.
Kia also gives the Telluride more serious off-road equipment in X-Pro form, including all-terrain tires, increased ground clearance, and an electronic limited-slip differential.
The Hyundai Palisade is also entering the 2027 model year with a broad range of configurations. Its standard gas version uses a 287-horsepower 3.5-liter V6, while the Palisade Hybrid combines a turbocharged 2.5-liter engine with electric motors for 329 horsepower and 339 lb-ft of torque. The hybrid can return up to 34 mpg combined in its most efficient configuration.
The Toyota Grand Highlander takes a more efficiency- and practicality-focused approach. Its standard turbocharged 2.4-liter four-cylinder makes 265 horsepower and 310 lb-ft of torque, while Toyota also offers a conventional hybrid and the much more powerful Hybrid MAX. The Grand Highlander provides up to 97.5 cubic feet of cargo capacity and up to 5,000 pounds of towing capability.
That creates three distinct choices.
The Telluride emphasizes new technology, capability, and a more adventurous personality. The Palisade focuses on comfort, features, and powertrain variety.
The Grand Highlander puts passenger space, cargo room, efficiency, and Toyota’s established hybrid expertise near the top of its priorities.
So which one deserves the win? Here is how the three SUVs compare across six categories that matter most to buyers.
Price and Value
Price is an important part of this comparison because these three SUVs can move from mainstream family transportation into near-luxury territory once buyers begin selecting higher trims.
The 2027 Telluride starts in the low-$40,000 range, depending on configuration and destination charges. Its new generation also brings a significantly updated interior, modern technology, and a standard turbocharged engine.
Kia’s new model offers up to eight-passenger seating and makes features such as a 12.3-inch touchscreen, wireless smartphone connectivity, and multiple USB-C ports available throughout the cabin.
That gives Telluride a strong value argument. The Palisade is similarly positioned. Hyundai’s 2027 gas Palisade starts around the $40,000 mark, while the higher trims move toward the upper $50,000 range.
The Calligraphy is particularly interesting because Hyundai gives it a long list of premium equipment without pushing the price into traditional luxury SUV territory.
Hyundai’s warranty also strengthens the Palisade’s ownership proposition. The company continues to provide a five-year/60,000-mile new-vehicle limited warranty and a 10-year/100,000-mile powertrain warranty.
The Grand Highlander starts higher than the entry-level Palisade and Telluride. Toyota lists the 2026 model at $42,260 before destination, while the 2027 Grand Highlander continues essentially unchanged. Higher trims can move well beyond $50,000, and the Hybrid MAX Platinum reaches approximately $60,000.
However, Toyota’s value proposition changes when fuel economy is considered. The Grand Highlander Hybrid provides dramatically better fuel economy than the gas-only models. Toyota lists up to 36 mpg combined for the most efficient 2026 hybrid configurations, while the Hybrid MAX produces 362 horsepower and 400 lb-ft of torque.
That means a buyer who keeps the SUV for many years and drives significant mileage may recover some of the hybrid’s higher purchase price through reduced fuel consumption.
Still, value is more than fuel economy. The Telluride provides a strong mix of space, technology, power, and standard equipment at a competitive entry price. The new generation also makes the vehicle feel more modern than its predecessor.
The Palisade remains close behind and offers an excellent equipment list. The Grand Highlander is more expensive to enter but provides exceptional practicality and hybrid choices.
For buyers seeking the most features and capability without immediately climbing into expensive trims, the Telluride has the strongest value proposition.
Winner: Kia Telluride
Powertrain and Performance
The Palisade wins this category because it provides the broadest combination of powertrain choices and the strongest hybrid output.
The standard 2027 Palisade uses a 3.5-liter V6 producing 287 horsepower and 260 lb-ft of torque. It is available with front-wheel drive or Hyundai’s HTRAC all-wheel-drive system.
That engine is smooth and predictable, although its acceleration is not particularly aggressive for a three-row SUV. The advantage is that buyers get a familiar naturally aspirated V6 with straightforward power delivery.
The bigger story is the Palisade Hybrid. Its turbocharged 2.5-liter four-cylinder works with an electric motor system to produce 329 horsepower and 339 lb-ft of torque. Hyundai pairs it with a six-speed automatic transmission rather than a continuously variable transmission.
That gives the hybrid both stronger output and substantially better efficiency. The Palisade Hybrid’s most efficient FWD configuration is rated at 34 mpg combined, while AWD versions are rated at 30 mpg combined.
The Telluride’s new turbocharged 2.5-liter four-cylinder produces 274 horsepower and 311 lb-ft of torque. That is a major change from the outgoing V6. The additional torque arrives much lower in the rev range, giving the Telluride stronger low-speed response than its horsepower figure might suggest.
The Telluride also offers an available hybrid powertrain for 2027. Kia lists 329 horsepower and 339 lb-ft for its 2.5-liter turbo-hybrid system, matching the Palisade Hybrid’s headline output.
The Grand Highlander offers the widest Toyota powertrain range. Its base 2.4-liter turbocharged four-cylinder produces 265 horsepower and 310 lb-ft of torque. The conventional hybrid makes 245 horsepower, while the Hybrid MAX combines its turbocharged engine and electric assistance for 362 horsepower and 400 lb-ft of torque.
The Hybrid MAX is easily the performance leader in peak output. It can deliver considerably stronger acceleration than the standard Grand Highlander, while its 26 mpg combined rating remains respectable considering its output.
Yet the Palisade gets the category because it offers an especially strong balance. Its 329-horsepower hybrid gives buyers more power than the standard Telluride and Grand Highlander, while its conventional V6 remains available for buyers who prefer a simpler setup.
The Telluride is now much more competitive, and the Grand Highlander Hybrid MAX is the strongest performer. But the Palisade offers the most attractive powertrain combination for the widest group of buyers.
Winner: Hyundai Palisade
Interior Space and Family Practicality
The Grand Highlander wins this category because Toyota designed it specifically around families who need substantial passenger and cargo space.
This is one area where the Grand Highlander’s larger dimensions become meaningful. Toyota lists up to 97.5 cubic feet of cargo space with the rear seats folded. The SUV also offers seating for up to eight, depending on configuration.
The third row is particularly important. Many three-row SUVs technically provide seven or eight seats but become uncomfortable once adults attempt to use the rearmost row. The Grand Highlander is designed to make the third row substantially more useful.
Car and Driver describes its third row as adult-friendly and specifically highlights its generous passenger space and cargo room. That gives Toyota a meaningful advantage for large families.
The Telluride is also very practical. The new 2027 model can seat up to eight people, and Kia emphasizes its second-row space and three-row usability. Its interior also provides numerous storage areas and USB-C charging points across all three rows.
The Telluride’s cabin has another advantage, with a layout that feels more deliberately designed around passengers.
The new dashboard provides a wide digital display arrangement, while higher trims add features such as heated and ventilated second-row seats, a head-up display, and a digital rearview mirror. The Palisade also provides seven- or eight-passenger configurations.
Its second row can be configured with either captain’s chairs or a bench depending on trim, and Hyundai pays considerable attention to passenger comfort. The available higher trims include features such as heated and ventilated seating and premium interior materials.
However, cargo space is where the Grand Highlander pulls away. Toyota lists 20.6 cubic feet behind the third row and 97.5 cubic feet with the rear seats folded.
That makes it particularly useful for families who regularly travel with luggage, sports equipment, strollers, or large purchases.
The Grand Highlander’s longer body also helps create a more usable third row without forcing passengers in the second row to sacrifice too much space.
The Telluride remains an excellent family vehicle. The Palisade is similarly impressive, especially for buyers who place comfort and premium appointments ahead of maximum cargo room.
The Grand Highlander was designed to solve one of the biggest shortcomings of traditional midsize three row SUVs, which is limited space when all three rows are in use.
Toyota’s SUV provides enough room to make the third row genuinely useful while retaining meaningful cargo capacity behind it.
For large families, road-trip enthusiasts, and owners who regularly carry bulky items, that additional room makes a noticeable difference. The Grand Highlander therefore earns the win for interior space and practical family use.
Winner: Toyota Grand Highlander
Fuel Economy and Hybrid Efficiency
Fuel economy has become increasingly important in large family SUVs because these vehicles can accumulate significant mileage during school runs, commuting, and road trips.
The Grand Highlander has a major advantage because Toyota offers both a conventional hybrid and the powerful Hybrid MAX.
The standard Grand Highlander gas model is rated around 24 mpg combined in its most efficient front-wheel-drive configuration. Toyota’s Hybrid LE can reach 36 mpg combined, while the Hybrid XLE is rated at up to 35 mpg combined depending on the drivetrain.
Those numbers are significantly better than the gas-only versions. The Hybrid MAX is less focused on economy, but it still delivers 26 mpg combined while producing 362 horsepower and 400 lb-ft of torque.
That combination is unusual. A buyer can choose a Grand Highlander primarily for fuel savings or select the Hybrid MAX for substantially stronger performance without abandoning hybrid technology.
The Palisade has also become much more competitive. Its 2027 Hybrid uses a turbocharged 2.5-liter four-cylinder and electric motors to produce 329 horsepower and 339 lb-ft. The most efficient FWD version is rated at 33 mpg city, 35 mpg highway, and 34 mpg combined.
That is an impressive result for a large three-row SUV. AWD models are rated at 29 mpg city, 31 mpg highway, and 30 mpg combined, according to Hyundai.
The Telluride also enters the hybrid competition for 2027. Kia’s new Telluride Hybrid produces 329 horsepower and 339 lb-ft, and Kia says the FWD version can achieve up to 35 mpg combined. Its total estimated range can reach 637 miles in the most efficient configuration.
That puts Telluride very close to the Palisade. The important distinction is Toyota’s depth of hybrid offerings.
Toyota has been developing hybrid powertrains for decades, and the Grand Highlander gives buyers several different ways to use that technology. Someone focused purely on fuel savings can select the standard hybrid, while someone who wants performance can choose Hybrid MAX.
The Grand Highlander’s hybrid system also avoids forcing buyers to choose between three-row practicality and fuel efficiency.
The Palisade Hybrid is an excellent alternative and may be the better choice for someone who values power and premium equipment alongside efficiency.
The Telluride Hybrid is also highly competitive and gives Kia a much stronger position than the previous generation. But Toyota offers the most comprehensive hybrid strategy.
Its most efficient version delivers excellent fuel economy, while its most powerful version delivers 362 horsepower.
That flexibility makes the Grand Highlander the strongest choice for buyers who prioritize fuel consumption.
Winner: Toyota Grand Highlander
Technology, Comfort, and Safety
The Palisade wins this category because Hyundai combines a premium cabin atmosphere with a large technology package and a strong collection of standard driver-assistance systems.
The 2027 Palisade has a more upscale interior than its price might suggest. Higher trims such as Limited and Calligraphy add premium materials, advanced seating features, and additional convenience technology. Car and Driver specifically praises the Palisade’s upscale appearance, abundant interior amenities, and agreeable ride.
The Telluride is now extremely competitive. Its redesigned cabin brings a modern digital interface and a 12.3-inch touchscreen with navigation, wireless Apple CarPlay, and Android Auto. Kia also provides multiple USB-C charging points throughout the cabin.
Higher Telluride versions add impressive equipment. Available features include a 12-inch head-up display, digital rearview mirror, smartphone digital key, and heated and ventilated second-row seats.
The X-Pro also gets technology designed around off-road driving, including an available Ground View Monitor and off-road information display. Toyota’s Grand Highlander provides a strong technology package as well.
The XLE features a 12.3-inch Toyota Audio Multimedia system with wireless Apple CarPlay and Android Auto compatibility, while higher trims add a 12.3-inch digital gauge cluster and available panoramic-view camera technology.
Toyota Safety Sense 3.0 is also standard across the 2026 Grand Highlander lineup, bringing a comprehensive collection of active safety technologies. However, the Palisade has a slight advantage in how its technology integrates with the cabin.
The controls are designed around a premium family experience rather than simply maximizing screen size. The higher trims provide an impressive list of comfort equipment, while the new generation retains Hyundai’s focus on standard convenience features.
The Palisade’s ride quality is another strength. It is tuned more toward relaxed cruising than aggressive handling, which suits its role as a family vehicle. The cabin is quiet and comfortable, making it particularly attractive for long-distance travel.
The Telluride has become a strong alternative. Its redesigned interior may appeal more to buyers who prefer a modern and technology-heavy cabin, while its X-Pro trim provides equipment that the Palisade does not match in exactly the same way.
The Grand Highlander is the most practical and perhaps the easiest to use, but its interior lacks some of the visual drama of the Hyundai and Kia.
For buyers who want a three-row SUV that feels expensive, comfortable, and packed with features, the Palisade has the strongest combination.
Winner: Hyundai Palisade
Capability, Towing, and Versatility
The Telluride takes the final category because the new generation gives Kia a stronger combination of towing capability, all-wheel-drive equipment, and adventure-oriented hardware.
All three SUVs can tow up to 5,000 pounds when properly equipped. The Grand Highlander reaches a maximum 5,000-pound towing rating, while the Palisade also reaches 5,000 pounds.
The Telluride matches them at 5,000 pounds. Kia also provides an available self-leveling rear suspension that helps maintain ride and handling characteristics when the SUV is carrying a heavier load.
That gives all three vehicles enough capability for moderate trailers, boats, and recreational equipment. The bigger difference comes from off-road equipment.
The 2027 Telluride X-Pro is designed specifically for buyers who want more capability away from pavement. Kia lists 9.1 inches of ground clearance for the X-Pro, along with 18-inch all-terrain tires and an electronic limited-slip differential.
The X-Pro also receives front and rear recovery hooks and an off-road information display. That makes the Telluride more than a family SUV with an appearance package.
The Palisade offers an XRT Pro AWD model with a more rugged configuration, while HTRAC AWD is available throughout much of the lineup. Hyundai also provides terrain modes for AWD versions.
The Grand Highlander is less focused on serious off-road driving. Its AWD system provides additional traction, and Toyota offers drive modes and other technologies designed for varying road conditions. But the Grand Highlander’s primary mission remains family transportation rather than trail driving.
The Telluride’s combination of capability and passenger space is therefore particularly attractive.
A family can use it as a commuter during the week, tow a recreational trailer on weekends, and take the SUV onto dirt roads or moderate trails without selecting a separate off-road vehicle.
The Grand Highlander has an important advantage in cargo capacity. Its 97.5 cubic feet of maximum cargo space makes it exceptionally useful for moving large amounts of equipment.
The Palisade is also strong for towing and winter-weather driving, especially when equipped with HTRAC AWD. But the Telluride has the strongest adventure-oriented configuration.
Its X-Pro combines all-terrain tires, additional clearance, recovery hardware, an electronic limited-slip differential, and available ground-view technology.
That gives it a broader range of capability without turning the SUV into an uncomfortable daily driver.
For buyers who want one vehicle that can handle family transportation and occasional outdoor adventures, the Telluride offers the strongest package.
Winner: Kia Telluride
The Kia Telluride, Hyundai Palisade, and Toyota Grand Highlander are closely matched, but their strengths are different.
The Kia Telluride is the most adventurous option. Its new 2027 generation introduces a turbocharged 2.5-liter engine, available hybrid power, up to eight-passenger seating, and stronger X-Pro capability. Its 5,000-pound towing capacity and available self-leveling rear suspension also make it useful for recreational towing.
The Hyundai Palisade is the premium family choice. Its 287-horsepower V6 remains available, while the 329-horsepower hybrid gives buyers substantially stronger output and much better efficiency. Its upscale cabin and large list of comfort features make it particularly appealing to families who spend a lot of time on the road.
The Toyota Grand Highlander is the practicality and efficiency specialist. It provides the most cargo room, an adult-friendly third row, and several powertrain options. Its hybrid models also give Toyota a major advantage for buyers who want to reduce fuel consumption without moving into a smaller vehicle.
Here is how the six categories shake out:
| Category | Winner | The Edge |
|---|---|---|
| Price and Value | Kia Telluride | Competitive pricing combines generous equipment, space, and modern technology. |
| Powertrain and Performance | Hyundai Palisade | Hybrid power delivers strong output while retaining excellent everyday efficiency. |
| Interior Space and Family Practicality | Toyota Grand Highlander | Exceptional third-row room and cargo capacity make family hauling easier. |
| Fuel Economy and Hybrid Efficiency | Toyota Grand Highlander | Multiple hybrid choices deliver excellent efficiency across different performance needs. |
| Technology, Comfort, and Safety | Hyundai Palisade | Upscale materials, comfort features, and advanced technology create a premium experience. |
| Capability, Towing, and Versatility | Kia Telluride | X-Pro hardware adds genuine trail capability without sacrificing family usability. |
