Does a Toyota Highlander have a rear differential?

Yes — on models equipped with all-wheel drive, the Highlander has a rear differential on the rear axle to power the rear wheels. Front-wheel-drive models do not have a separate rear differential since the rear wheels are not driven.

As Toyota's Highlander lineup offers both FWD and AWD across multiple generations, understanding how the drivetrain is laid out helps with shopping, ownership, and maintenance. This article explains what a rear differential is, when you’ll find one on a Highlander, and how the AWD system distributes torque between the axles.

How the Highlander’s Drivetrain Works

In simple terms, the Highlander can be configured as front-wheel drive or all-wheel drive. The front drivetrain includes a front differential as part of the transaxle, delivering power to the front wheels. When AWD is selected, a rear axle and its own differential come into play, allowing power to reach the rear wheels. A center mechanism or coupling helps divide torque between the front and rear axles to respond to grip conditions automatically.

Does the Highlander have a rear differential?

Yes, on AWD versions. The rear differential is a standard component of the rear axle in Highlanders equipped with all-wheel drive, enabling torque to be shared with the rear wheels. Front-wheel-drive Highlanders do not have a rear differential powering the back wheels.

What to know about the drivetrain components

Below is a brief overview of the drivetrain components you’re likely to encounter on a Highlander with AWD. The following list highlights how power moves through the system and what you should know about the rear differential.

• Rear differential on AWD models: splits torque between the left and right rear wheels, enabling stable power delivery on varied surfaces.


• Front axle/transaxle differential: in all Highlanders, the front drivetrain includes a differential as part of the front axle assembly to balance power between front wheels.


• Center torque distributor: a transfer mechanism or electronically controlled coupling that modulates torque between the front and rear axles, allowing the system to respond to changing grip conditions.


• On-demand engagement: the AWD system typically engages the rear wheels automatically when rear traction is needed and can disengage to save fuel when not required.

In short, the existence of a rear differential depends on whether your Highlander is equipped with AWD; AWD models have one, while FWD models do not in the sense of powering the rear wheels.

How to verify your specific Highlander

The best way to confirm is to check the drivetrain specification for your model year, look for AWD badging, or review the window sticker. If you’re shopping used, ask the seller for the exact drivetrain option and verify by VIN, since configurations can vary by market and model year.

Summary

Recap: A Toyota Highlander has a rear differential when equipped with all-wheel drive. Front-wheel-drive Highlanders use only the front drivetrain and do not include a rear differential that powers the rear wheels. Knowing your drivetrain helps with maintenance planning and understanding how power is distributed under various driving conditions.

What is the most common problem with a Toyota Highlander?

The most common problem with the Toyota Highlander is a major oil leak and loss of oil pressure caused by a faulty VVT-i oil line. Other frequent issues include infrequent but noticeable interior rattles, especially from the moonroof or dashboard, and problems with the 8-speed automatic transmission in 2017-2019 models, leading to noises, delayed shifting, and failure. 
You can watch this video to learn about common problems with Toyota Highlander, including the 8-speed transmission issue: 59sChris DrivesYouTube · Jul 5, 2025
Most common problems

• VVT-i oil line rupture: This is the most frequent and serious issue, where the oil line bursts, causing a massive oil leak that can lead to complete engine failure if the vehicle is driven while the low oil pressure light is on. A revised part has been issued, but it has also been reported to have the same problem. 
• Interior rattles and noises: Many owners report various rattles and squeaks coming from the interior, such as the moonroof, dashboard, or infotainment screen, particularly on bumpy roads or in cold weather. 
• 8-speed automatic transmission: Specific models, particularly the 2017–2019 Highlanders, have been associated with issues such as a whining noise, delayed shifts, hard shifts, and even complete failure. 
• Airbag sensor failure: Some models have a faulty front passenger airbag sensor that can short-circuit, preventing the airbag from deploying correctly. 

Other potential issues

• Air and water leaks: Some model years have reported issues with plugged sunroof drain lines, leading to water leaks inside the vehicle. 
• Check engine light: This can be caused by various issues, such as the hose coming off the air filter housing or a failed oxygen sensor. 
• Brake issues: Some models have reported premature wear of brake pads and rotors, or a vibrating sensation when braking. 

This video discusses problems with the 8-speed transmission in the 2017-2019 Toyota Highlander: 58sThe Car Care NutYouTube · Jul 31, 2021

Does a Toyota Highlander have a front and rear differential?

The Highlander came standard with front-wheel drive and offered full time four-wheel drive. A rear limited-slip differential was optionally available on models without traction control.

What year to stay away from a Toyota Highlander?

Years to avoid in the Toyota Highlander include 2003, 2008, 2014, 2015, and 2020 due to common issues like transmission problems, oil leaks, and technology glitches. Other problematic years to consider are 2001-2007 (engine and climate control issues) and 2016-2019 (varying issues including potential oil leaks in some models).
 
This video discusses problems with the Toyota Highlander from 2020 to 2025, including paint issues: 54sCarnivautoYouTube · Feb 11, 2025
Toyota Highlander years to avoid

• 2001–2007: Prone to engine overheating, head gasket failures, and climate control issues like AC compressor and blower motor problems. 
• 2003: A big year for issues, particularly engine oil sludge buildup and premature transmission wear, according to Regan Motors Inc and Clutch. 
• 2008: A redesigned model that experienced oil cooler line leaks, which can cause engine damage if not addressed, and lower-quality interior components. 
• 2014: A recall was issued for the second-row seat assembly that may not lock correctly into the seat track, and there were also reports of issues that might be linked to the transmission, says Clutch and Reddit users. 
• 2015: Experienced growing pains from its redesign, with various reports of growing issues, according to Regan Motors Inc and Clutch. 
• 2020: Experienced early transmission and software problems, say Clutch and Reddit users. 

You can watch this video to learn more about common problems with the 2020-2025 Toyota Highlander: 51sChris DrivesYouTube · Jul 5, 2025

What is the lawsuit against the Toyota Highlander?

Recent and ongoing lawsuits involving the Toyota Highlander address issues such as faulty door lock actuators, a potential transmission defect in certain models, and a claim that 2020-2021 Highlander Hybrids have fuel tanks that do not fill completely. Other recent lawsuits include an investigation into defective power liftgates and a separate class action settlement for a Bluetooth echo defect that affected some Highlanders. 
Current and recent lawsuits

• Door Lock Actuators: A class action lawsuit was filed because many Toyota models, including the Highlander, reportedly have defective door lock actuators that may fail to engage properly. The lawsuit claims owners have been charged for repeated replacements, which Toyota allegedly considered "wear and tear" items. 
• Transmission Defect: Lawsuits allege that certain Highlander models (2017-2022) equipped with the UA80 automatic transmission have a defect that can cause whining, erratic shifting, and premature failure. A Customer Support Program (CSP ZJC) was created but only covers a limited number of vehicles, according to Change.org. 
• Fuel Tank Defect: A class action lawsuit was filed on behalf of owners of 2020-2021 Highlander Hybrids, claiming a defective fuel tank vent causes it to not fill to its capacity. 
• Power Liftgate Defect: Some Highlander models (XU20, XU40, XU50, and Highlander Hybrid MHU28) are reportedly affected by a power liftgate defect that can lead to costly repairs, with the lawsuit alleging Toyota knew about the issue but did not issue a recall or warning. 
• Bluetooth Echo Defect: A class action lawsuit over a Bluetooth defect that caused an echo on calls in certain Toyota models, including the Highlander, resulted in a settlement, notes this article from Unión Rayo and ClassAction.org. 

How to proceed

• Identify your vehicle's details: Determine if your Highlander is included in any of these lawsuits by checking its model year, VIN, and the specific defect alleged.
• Gather evidence: Collect any repair invoices, service records, or documentation related to the defect.
• Contact an attorney: Speak to a lawyer who specializes in consumer or automotive class action lawsuits to understand your options and how you may be affected by an ongoing investigation or settlement. 
• Check settlement websites: Visit official settlement websites if they are available for a specific lawsuit, as they often provide important information and instructions for potential claimants.