Midyear addition of a Sport model highlights 2006 for this car-type SUV. Highlander shares its basic design with the more-expensive RX SUV from Toyota's premium Lexus division, and like the RX, offers gas and gas/electric hybrid models. Highlander seats up to seven and comes with front-wheel drive or with all-wheel drive that lacks low-range gearing. Conventional-powertrain Highlanders come in base, Limited, and new Sport models. Base models are available with a 155-hp 4-cyl engine or a 215-hp V6. Sport and Limited use the V6. The Hybrid also comes in base and Limited trim, but both team a gas V6 with an electric motor for 268 hp. Like Toyota's other Hybrids, it runs on one or both of its power sources, depending on driving demands, and requires no plug-in charging. Hybrids have a continuously variable automatic transmission (CVT). Other Highlanders have conventional automatic transmissions.

Standard on Hybrids and optional for other Highlanders are front side airbags and curtain side airbags. The curtain airbags include rollover deployment but cover just the first two seating rows. All Highlanders have ABS and traction/antiskid control. Options include a sunroof and DVD entertainment. An optional navigation system is exclusive to Limited and Limited Hybrid. The Sport has a sport suspension.