The Toyota Highlander is one of the most popular three-row crossover-SUV models on the market. The Highlander Hybrid doesn’t cost much to get into and offers excellent fuel economy for the class with little compromise compared to its gasoline counterpart.

The 2023 Toyota Highlander comes in two flavors: the turbocharged four-cylinder standard gasoline model and the Hybrid with its hybrid-electric boost replacing that turbo. There are other mechanical differences between the two, of course, but this illustrates the main difference. The Highlander Hybrid has a small “hybrid premium” upgrade cost, but this is offset by a near 10 mpg increase in fuel economy.

The Highlander Hybrid has a well-done interior and versatile seating layout, allowing a large combination of passenger and cargo configurations. Its third row is a little bit cramped and useful mostly for children, but cargo space (when the third row is not in use) is excellent.

We were surprised at the peppiness of the hybrid version of the Highlander, having expected the cliche of low performance in return for high fuel efficiency. Instead, we got confidence out of the Highlander Hybrid alongside its comfortable interior.

With over four decades of doling out trusted automotive advice and extensive vehicle knowledge, both behind the wheel and under the hood, Car Talk's founder and original Tappet Brother Ray Magliozzi shares his first-hand experience test driving the Toyota Highlander Hybrid.

The Ford Explorer is larger and more expensive than the Highlander Hybrid. The “hybrid premium” for the Explorer is steeper, meaning it will take longer to recoup that extra cost via fuel savings and potential tax deductions. On the other hand, the larger size of the Explorer means a better third row.

The Sorento Hybrid is smaller than the Highlander Hybrid, but priced similarly. The Sorento has the same third-row issue as the Highlander and less versatility because of its size. Comparing via price versus what you receive, the Highlander Hybrid is more likely to be a better value.

It’s worth comparing the hybrid model against its gasoline, non-hybrid counterpart. Both models have the same versatility and accommodation, but the Highlander Hybrid offers 8-10 mpg better combined fuel economy (depending on configuration) and doesn’t have a high up-front price for that gain. We see little reason to ignore the hybrid based purely on it being a hybrid.

The Toyota Highlander Hybrid has a starting price of $41,555 plus delivery versus the similarly-equipped non-hybrid Highlander at $40,155 plus destination. Most buyers are likely looking at the XLE for its excellent list of amenities for the price at about $44,555.

Changes for the 2023 Highlander Hybrid include some new equipment, added standard equipment, and a new trim level.

The Limited, Platinum, and Bronze Edition trims now have a 12.3-inch touchscreen for infotainment as well as power-folding side mirrors. All trim levels of the Highlander Hybrid receive a new digital instrument cluster as standard. The XLE trim gains the power liftgate that is standard on the trims above it.

The new Bronze Edition trim level debuts as a mid-tier trim option between the XLE and the Limited. As its name implies, it adds several bronze-themed items such as bronze-colored wheels, illuminated bronze door sills, and bronze accents both inside and out. It includes all of the XLE trim’s items, such as a sunroof and roof rails as well as a hands-free liftgate. Infotainment is the new 12.3-inch screen, the digital instrument cluster is also upgraded to the larger 12.3-inch layout, and two household outlets are added to the Highlander Hybrid Bronze Edition as well.

We drove both the standard gasoline model Highlander with its new turbocharged engine and the Highlander Hybrid model. The two are comparatively similar in most driving situations with the turbo model having more pep during highway speed passing and the hybrid having more get-up in lower speed situations where the engine isn’t revving so high.

We prefer the Hybrid model thanks to its much better fuel economy returns and general likable appeal in most driving situations. It is confident and capable in nearly every situation we encounter. The AWD model adds a little more light off-road stability for hitting the campground or the lake on the weekend while its daily ergonomics are very good otherwise.

The 2023 Highlander Hybrid has a 2.5-liter four-cylinder engine that pairs to a hybrid-electric system with a continuously variable transmission (CVT). Total output is 243 horsepower with the electric motor doing most of the work at lower speeds and the engine jumping in as speeds increase. This is a nice setup and something that Toyota has perfected throughout its lineup of hybrid options.

Toyota also includes advanced safety systems and driver’s aids as standard equipment as well.

The Toyota Highlander Hybrid has received top scores from crash tests and advanced equipment testing. It is one of the highest-ranked midsize SUVs on the market.

It’s difficult to find reliability ratings for the hybrid model specifically, but overall the Toyota Highlander has received high marks from most reliability assessments. Toyota as an automaker on the whole is often high on reliability charts.

These two things give us little reason to consider the Highlander Hybrid as anything less than above average in reliability expectation.

We recommend the Highlander Hybrid XLE model for its mixture of value and liveability. The XLE adds power-adjustable front seats with heating. Plus a sunroof, wireless charging pad, and rear sunshades for passengers to keep comfortable. A power liftgate is now also standard in the XLE.

We would recommend upgrading to all-wheel drive in most parts of the country as this adds resale value and capability to the Highlander Hybrid without losing much efficiency.

Those looking for some extra bling can do so with just a few more dollars by going to the Bronze Edition, which has most of the XLE’s amenities plus bronze color highlights such as bronze-colored wheels, illuminated door sills, and accent pieces. It also has the larger 12.3-inch touchscreen and instrument cluster, plus two added 120-volt outlets in the cabin.

The Highlander Hybrid comes with an industry standard warranty package plus two years of free maintenance.

• Basic: 3 years / 36k miles
• PowerTrain: 5 years / 60k miles
• Hybrid Components: 8 years / 100k miles
• Hybrid Battery: 10 years / 150k miles
• If buying used look at our best extended warranties

There can be significant savings if the Highlander Hybrid can be found used. This generation of the Highlander entered the market in the 2020 model year, so finding used models is now just becoming a possibility. Expect to pay a premium, however, as resale values and depreciation on the Highlander Hybrid are much better than average.

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