Does Highlander have a transfer case?

No. The Toyota Highlander does not have a traditional transfer case with a low-range gear. It uses an all-wheel-drive (AWD) system that distributes torque between the front and rear axles via a center differential or electronically controlled coupling, and it lacks a dedicated low-range gear used in true 4x4 systems.

Understanding transfer cases and AWD vs 4WD

In automotive terms, a transfer case is a separate component found on many 4x4 vehicles that splits power between the front and rear drives and often provides a low-range gear for improved crawling ability. AWD systems, by contrast, generally use a center differential or clutch-based coupling within the transaxle to vary torque distribution automatically, without a manual low-range setting. This distinction matters for off-road capability and low-speed traction conditions.

How the Highlander’s drivetrain works

The Highlander is offered with front-wheel drive (FWD) as standard and all-wheel drive (AWD) as an option. In AWD models, power is routed through the front axle and can be distributed to the rear via an electronically controlled coupling or center differential. There is no dedicated low-range gear or manual transfer-case lever. The system is designed to improve on-road stability and handle adverse conditions like rain or light snow, rather than to provide serious off-road crawling capability.

In practice, the AWD setup biases torque to the axle with better traction automatically and works in concert with stability and traction-control systems. It does not offer a true 4WD low-range mode or a lockable center differential, which are features typically associated with traditional off-road 4x4 drivetrains.

Before exploring the practical implications, note these key points about Highlander AWD:



• No low-range transfer case is available or required for everyday driving.


• AWD operates automatically and adjusts torque distribution as needed for traction.


• Serious off-roading that relies on a transfer case and low-range gearing is generally beyond the Highlander’s design intent.

Understanding these distinctions helps when choosing between a Highlander and a purpose-built 4x4 SUV for off-road use.

Model-year notes

Across recent generations, the Highlander has continued to offer FWD with optional AWD, with the underlying AWD approach emphasizing automatic torque distribution rather than a traditional transfer-case setup. For exact specifications, consult the owner's manual for your model year or contact a Toyota dealership.

Summary

In short, the Highlander does not feature a traditional transfer case or a low-range gear. It uses an AWD system with a center differential or electronically controlled coupling to manage torque between the front and rear wheels, prioritizing on-road handling and weather traction over true off-road 4x4 capabilities. If you need a vehicle with a transfer case and low-range for rugged off-roading, consider Toyota’s 4x4 models like the 4Runner.

Does a Highlander have a transfer case?

So the front transfer case is right here. This is the drain plug. And this is the fill plug.

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. 

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 2019 Toyota Highlander have a transfer case?

Whether you're repairing or upgrading your Transfer Case, using high-quality parts is key to keeping your 2019 Toyota Highlander looking sharp and performing at its best.