I drove Toyota’s $55,000 Highlander Hybrid. It’s an efficient and well-made family SUV, but lacks power and space.

I was impressed by the efficiency of the Highlander’s hybrid powertrain, its well-designed cabin, and its exceptional build quality.

However, I was led down by the excessive noise from the Highlander’s hybrid power unit, tepid performance, and limited passenger and cargo room.

The base front-wheel-drive Highlander LE starts at $39,120, while the FWD Highlander Hybrid LE starts at $40,720.

All-wheel-drive and the hybrid powertrain option each add $1,600 to the sticker.

My range-topping all-wheel-drive Highlander Hybrid in Platinum trim starts at $53,375. Freight fees and floor mats pushed the as-tested price of the Indiana-built SUV to north of $55,000.

The mid-grade Nightshade trim replaces the Highlander’s chrome brightwork with black trim pieces. Black 18-inch units have also replaced its chrome and silver alloy wheels.

The Nightshade is similar to Subaru’s Onyx and Hyundai’s XRT trims.

Up front, it comes equipped with self-leveling LED headlights that turn with the steering wheel to help the driver better see in corners.

Unfortunately, the fourth-generation Highlander has eliminated the popular two-piece tailgate, which allows you to open the window independently of the rest of the tailgate.

The Limited trim also has 20-inch wheels but in chrome. All other trim levels have smaller 18-inch wheels.

At 194.9 inches, the Highlander is about two inches shorter than the Hyundai Palisade and nearly half a foot shorter than the Honda Pilot.

The Highlander boasts eight inches of ground clearance, which is comparable to the Palisade but better than the 7.3 inches offered by most versions of the Pilot.

The hybrid is rated to tow up to 3,500 lbs, while the non-hybrid versions can tow up to 5,000 lbs.

The Highlander’s standard engine is a 265-horsepower 2.4-liter turbocharged four-cylinder engine.

Hybrid versions get a 2.5-liter, 186 horsepower, naturally aspirated four-cylinder mated to a pair of electric motors that combined to produce 243 unit horsepower. All-wheel-drive models have an additional electric mounted to the rear axle.

Instead of a lithium-ion battery pack, the Highlander has a traditional nickel-metal hydride battery.

My all-wheel-drive Highlander Hybrid Platinum boasted EPA fuel-economy figures of 35 mpg city, 34 mpg highway, and 35 mpg combined, impressive for a vehicle of its size and heft.

Even after being driven in a spirited manner with some generous applications of the throttle, I was able to reach 31 mpg in combined driving, so the EPA ratings should be easily achievable.

Thanks to its trio of electric motors, the Highlander Hybrid felt decently peppy when navigating through urban traffic. Apply the throttle gingerly, and the hybrid will happily move you along at a reserved pace.

But the refined driving experience quickly falls apart when the hybrid powertrain is called upon to deliver the grunt needed for highway on-ramps or any real acceleration.

Step on the gas and the serenity of the cabin is harshly interrupted by the loud, intrusive drone of its four-cylinder engine straining to propel the 4,600 lb SUV. It just feels underpowered.

According to Motor Trend, the 2024 Highlander Hybrid can accelerate from 0 to 60 in 8.4 seconds — and those seconds can be painful on your ears.

I found the overall experience particularly surprising as my daily driver is also powered by Toyota’s hybrid system with a 2.5-liter four-cylinder engine, and it doesn’t make nearly the racket this thing does.

So it’s disappointing to know that Toyota is absolutely capable of delivering the refined powertrain the Highlander Hybrid deserves but hasn’t.

The Highlander cabin is a thoroughly enjoyable place to be. It’s stylish, thoughtfully designed, and packed with handy storage nooks.

What’s most impressive is the material and build quality. The plastic interior trim pieces felt substantial, and the entire cabin felt impeccably screwed together.

Base LE trim Highlanders have fabric seats, while mid-grade models are trimmed in SofTex synthetic leather. Only XLE and Platinum grade models, like my tester, get leather upholstery.

The layout of the steering wheel’s media and driver’s assistance feature controls are shared across other models in the Toyota/Lexus lineup.

The 12.3-inch digital display looks good and is configurable.

The 10-inch HUD gives drivers easy access to key information, such as speed, hybrid system status, and driver assistance status.

Lower trim levels come with a smaller 8-inch unit.

Immediately below the touchscreen is the Highlander climate panel. The intuitively designed combination of physical buttons and rotary dials makes on-the-go use a breeze.

The 11-speaker, 1,200-watt JBL premium audio system is standard on the Limited and Platinum trims.

The center stack alone has a wireless charging pad, a 12V socket, a USB-A plug, and a pair of USB-C plugs.

The hybrid system offers three primary drive modes: Normal, Eco, and Sport. Normal mode is for everyday driving, Eco is designed to maximize fuel economy, and Sport mode quickens throttle response for peppier acceleration.

There’s also an EV Mode that allows for short periods of all-electric driving at low speeds. Trail mode apportions additional power to the rear motor to improve off-road traction.

The rear cabin climate and heated seat controls are at the back of the center console, including USB-C power sockets.

The Highlander also has a panoramic mirror that helps the driver keep track of what’s going on in the back seats.

The panoramic roof is exclusive to the Platinum trim. A traditional moonroof is available on lower trim levels.

The heated leather captain’s chairs in my test car were excellent. They were supportive and comfortable.

The Highlander’s second-row seats offer 38.7 inches of legroom, which trails the Pilot and Palisade by 2.1 and 3.7 inches, respectively.

The third-row bench seats in this segment should generally be reserved for children or short trips around town, but this is especially true for the Highlander, with just 28 inches of legroom.

The Pilot has 32.5 inches of legroom, while the Palisade has 31.4 inches.

That falls short of the Palisade’s 18 cubic feet and the Pilot’s 18.6 cubic feet.

With the third-row seats folded, the Highlander’s cargo capacity expands to 48.4 cubic. In total, the Highlander boasts 84.3 cubic feet of cargo space behind its front row, trailing the Palisade and Pilot by two and 3.2 cubic feet, respectively.

It’s where you’ll find the cargo cover, tools, and the access point for the Highlander’s spare tire.

Toyota Safety Sense 2.5+ includes a pre-collision warning with pedestrian detection, dynamic radar cruise control, lane departure alert with steering assist, lane tracing assist, road sign assist, and automatic high beams.

There are some products out there that can be all things to all people.

The Toyota Highlander Hybrid is not one of them.

For those who put a premium on great fuel economy and Toyota’s exceptional build quality, the Highlander Hybrid is the capable and practical family SUV for you.

But for a vehicle that can cost upward of $55,000, its harsh, intrusive engine noise, lackluster performance, and limited cabin and cargo capacity are deal breakers for many.

Myself included.