Telluride, Palisade or Grand Highlander? The Best Three-Row Hybrid for Your Family
Kia and Hyundai share a 329-hp hybrid, Toyota has the roomiest third row, and the Santa Fe matches the best mpg. Here's which three-row hybrid fits which family.
Kia's first Telluride Hybrid reached dealers this summer, and Telluride sales jumped 42 percent in September as it arrived. It joins a crowded field of three-row hybrids: the Hyundai Palisade Hybrid uses the same 329-hp powertrain, Toyota's Grand Highlander Hybrid offers the biggest third row, and the smaller Hyundai Santa Fe Hybrid matches the best fuel economy of the group.
Toyota reset part of the comparison on Oct. 1, when it priced the 2027 Grand Highlander and added a trail-themed Woodland Edition. Prices below are base MSRPs checked against automaker sources on Oct. 2, 2026, and exclude destination unless noted.
The short answer
The Telluride Hybrid is the best all-rounder: it ties the Palisade for the most power among the base hybrids, has the highest tow rating among the four base hybrid powertrains, and holds a current IIHS Top Safety Pick+. The Palisade Hybrid is cheaper to get into and offers eight seats. The Grand Highlander Hybrid is the pick if adults will actually ride in the third row. The Santa Fe Hybrid suits families who need the extra seats only now and then.
Specs compared
| 2027 Kia Telluride Hybrid | 2027 Hyundai Palisade Hybrid | 2027 Toyota Grand Highlander Hybrid | 2027 Hyundai Santa Fe Hybrid | |
|---|---|---|---|---|
| Base hybrid MSRP | $46,490 (EX FWD) | $44,560 (SEL FWD) | $45,910 (Hybrid LE) | TBA |
| Destination / dealer fee | $1,545 | TBA | TBA | TBA |
| Powertrain | 2.5L turbo hybrid, 329 hp / 339 lb-ft | 2.5L turbo hybrid, 329 hp / 339 lb-ft | 2.5L hybrid, 245 hp (Hybrid MAX: 362 hp) | 1.6L turbo hybrid, 231 hp |
| Combined mpg, FWD | 35 (EX); 33 (other trims) | 34 (SEL, SEL Premium); 31 (Limited and up) | 36 (Hybrid XLE, Toyota estimate) | 36 |
| Combined mpg, AWD | 31 | 30 | 34 (Toyota estimate); Hybrid MAX 27 | 34 |
| All-wheel drive | $2,000 on EX; standard on X-Line and SX-Prestige | Available | Available on LE and XLE; standard on Woodland and Limited | Available |
| Seats | 7 | 7 or 8 | 7 or 8 | 6 or 7 |
| Third-row legroom | 32.1 in | TBA | 33.5 in | 30.0 in |
| Cargo behind third row | 21.3 cu ft | TBA | TBA | 14.6 cu ft |
| Max towing | 4,500 lb | 4,000 lb | 3,500 lb (Hybrid MAX: 5,000 lb) | 2,000 lb |
| IIHS 2026 award | Top Safety Pick+ (built after June 2026) | Top Safety Pick+ (2026 models built after Nov. 2025) | None | Top Safety Pick+ (2026 models) |
Telluride vs. Palisade: same engine, different priorities
Both Korean SUVs pair a turbocharged 2.5-liter four-cylinder with an electric motor and a six-speed automatic for 329 hp and 339 lb-ft. The hardware is shared. The spec sheets aren't.
The Palisade wins on entry price. A 2027 Palisade Hybrid SEL with front-wheel drive starts at $44,560, which is $1,930 below the Telluride Hybrid EX FWD at $46,490. The front-drive SEL is rated at 34 mpg combined, one less than the Telluride EX FWD's 35. Higher up, the Palisade holds its rating longer: the front-drive SEL Premium also gets 34 mpg, while front-drive Telluride trims above the EX drop to 33. Front-drive Palisades from the Limited up fall to 31, and all-wheel-drive versions sit at 31 for the Telluride and 30 for the Palisade.
The Telluride answers with capacity. Kia rates every Telluride Hybrid to tow 4,500 pounds, with available self-leveling rear suspension; Hyundai rates the Palisade Hybrid at 4,000 pounds. The Telluride is seven-seat only, while the Palisade offers a bench for eight.
Both hold IIHS Top Safety Pick+ awards, with fine print. The Telluride's covers 2027 models built after June 2026. The Palisade's covers 2026 models built after November 2025, when Hyundai changed the rear seat-belt buckles; the IIHS hasn't listed the 2027 Palisade separately. If you're buying early inventory, check the build date on the door-jamb label.
Grand Highlander: the space pick, with two compromises
Toyota's case is room. The Grand Highlander offers 33.5 inches of third-row legroom, the most here, and Toyota says it fits seven carry-on suitcases with every seat in use. The hybrid is also the most efficient of the three larger SUVs: Toyota estimates 36 mpg combined for the Hybrid XLE with front-wheel drive and 34 mpg for all-wheel-drive versions, including the new Woodland. EPA ratings for the 2027 model aren't posted yet.
The compromises are power and crash-test awards. The standard hybrid makes 245 hp and tows 3,500 pounds. The 362-hp Hybrid MAX tows 5,000 pounds but is estimated at 27 mpg, and for 2027 it comes only as the top Platinum trim. The Grand Highlander also has no 2026 IIHS award.
The 2027 Hybrid LE starts at $45,910 before Toyota's dealer processing and handling fee. Toyota hasn't priced the Woodland.
Santa Fe: the efficient part-timer
The Santa Fe Hybrid uses a smaller 1.6-liter turbo hybrid with 231 hp. It's rated at 36 mpg combined with front-wheel drive and 34 with all-wheel drive, matching the Grand Highlander's best figure. The cost is space and capability: 30.0 inches of third-row legroom, 14.6 cubic feet behind the third row, and a 2,000-pound tow rating. It does hold a 2026 IIHS Top Safety Pick+.
Two more options, and one on its way out
The 2026 Toyota Highlander Hybrid is still on sale. It launched at $47,020 for the XLE, before Toyota's processing fee, with standard all-wheel drive and a 35-mpg Toyota estimate. It's the last of its kind: the next Highlander, which Toyota lists as a 2028 model, is battery-electric only. Like the Grand Highlander, it has no 2026 IIHS award.
The Mazda CX-90 PHEV is the plug-in alternative. Mazda lists the PHEV Preferred from $50,695, with all-wheel drive standard, 56 MPGe, 26 mpg once the battery is depleted, and 26 miles of electric range by Mazda's figure. It's a 2026 Top Safety Pick+. A plug-in pays off only if you charge often, as our five-year cost math on hybrid, plug-in, and electric RAV4s shows.
Honda doesn't sell a hybrid Pilot and hasn't said whether one is coming.
What we don't know yet
- Hyundai's 2027 destination charge and Toyota's 2027 processing and handling fee. Only Kia's $1,545 is confirmed.
- Third-row legroom and cargo space for the Palisade Hybrid. We couldn't find them in Hyundai's published specs.
- 2027 Santa Fe Hybrid pricing, which Hyundai hasn't published in its newsroom.
- EPA ratings for the 2027 Grand Highlander and the Woodland Edition's price.
- Whether Honda will add a hybrid Pilot.
Which one should you buy?
Buy the Telluride Hybrid if you tow, or if you want the strongest overall package. The EX FWD comes to $48,035 with destination, but its 35-mpg rating applies to that trim only; all-wheel drive drops it to 31.
Buy the Palisade Hybrid if price or an eighth seat matters more than tow rating. Its SEL undercuts the Telluride EX by nearly $2,000 for the same horsepower and one less mpg, and the better-equipped SEL Premium keeps the 34-mpg rating with front-wheel drive. Confirm the build date.
Buy the Grand Highlander Hybrid if adults ride in the third row every week. You give up 84 hp to the Korean pair, 1,000 pounds of towing to the Telluride, and an IIHS award, but no other SUV here offers more third-row room, and none of the bigger three beats its estimated mpg.
Buy the Santa Fe Hybrid if the third row is for occasional kids and your trailer is light. It matches the Grand Highlander's best mpg in a smaller footprint.
