TSB: REVISION NOTICE July 01, 2019 Rev2: ? Applicability has been updated to 2019 ? 2020 model year Toyota vehicles. ? The Techstream Preparation and Process Overview sections have been updated. October 30, 2017 Rev1: ? Applicability has been updated to include 2018 model year vehicles. Any previous printed versions of this bulletin should be discarded. SUPERSESSION NOTICE The information contained in this bulletin supersedes SB No. T-SB-0012-13. Service Bulletin No. T-SB-0012-13 is obsolete and any printed versions should be discarded. Be sure to review the entire content of this bulletin before proceeding. Flash reprogramming allows the Electronic Control Unit (ECU) software to be updated
full bulletin at NHTSA ↗2005 Toyota Highlander powertrain problems
moderate 46 complaints filed with NHTSA · avg repair $2,500 · see powertrain across all vehicles →
Failure mileage
Complaints
46
Recalls
0
Avg fix
$2,500
2crashes
When does it fail?
Of the 46 powertrain complaints filed for the 2005 Toyota Highlander, here's the actual mileage breakdown — failures cluster heaviest at 0-25,000 mi.
0-25k
25-50k
50-75k
75-100k
100-125k
125-150k
150k+
Each bar shows the share of total complaints filed at that mileage range. Peak failure window highlighted. Some owners report problems earlier; some make it well past 150,000 miles symptom-free. Maintenance habits and driving conditions shift the curve as much as mileage alone.
What stands out
Owners have filed 46 powertrain complaints with NHTSA against this vehicle, but no formal recall covers the issue — the federal record reflects what manufacturers have admitted, not everything owners are reporting.
Powertrain accounts for 20% of all owner complaints filed against this vehicle, across 12 categories tracked.
Is there a fix? Manufacturer service bulletins
The manufacturer has issued service bulletins covering powertrain on this vehicle — documented repair instructions, service campaigns, or warranty extensions sent to dealers. A TSB isn't a recall (it's not a free safety remedy), but it's the manufacturer acknowledging the issue and how to fix it.
TechTip: Condition - The vehicle may be difficult to start or have an abnormally low or rough idle after the battery has been disconnected or power to the Engine ECM has been interrupted.
full bulletin at NHTSA ↗TSB: The purpose of this bulletin is to provide precautions to follow when installing an automatic transmission/transaxle assembly to avoid MIL "ON" shifting issues and/or transmission damage. Use the information in this bulletin when installing an automatic transmission/transaxle assembly.
full bulletin at NHTSA ↗The purpose of this service bulletin is to provide precautions to follow when installing an automatic transmission/transaxle assembly to avoid MIL ?ON,? shifting issues, and/or transmission damage. Use the information in this bulletin when installing an automatic transmission/transaxle assembly
full bulletin at NHTSA ↗This bulletin contains general vehicle pulling diagnosis and repair procedures along with specific information to help correct pulling complaints.
full bulletin at NHTSA ↗Source: NHTSA manufacturer communications. Bring the bulletin number to your dealer or shop.
The failure pattern owners describe
Owners across 46 complaints describe a pattern: the 2005 Highlander hesitates 1–2 seconds when accelerating from a stop or re-accelerating after slowing down, during which the engine revs but wheels don't move. This happens throughout ownership, often from purchase day onward. The hesitation is unpredictable—dealers can't replicate it—yet owners report it creates genuine traffic hazards when merging or crossing intersections. Transmissions also jerk and buck during shifts, particularly between 2nd and 3rd gear, and shift delay worsens in traffic. Some owners underwent transmission fluid changes, ECM reprogramming, and even full transmission replacement without fixing the problem.
Separate from hesitation, owners report transfer case and differential seals fail repeatedly, leaking gear oil onto exhaust systems and causing smoking. These leaks can drain fluid entirely between services, risking differential seizure at highway speed (one owner lost power from 65 mph to 30 mph mid-highway). Repairs involve gasket and seal replacement or full assembly replacement, but leaks recur within months to years.
Toyota issued Technical Service Bulletins for transmission recalibration (June 2005) and transfer case seals (2007–2010) but made no recalls, and dealers dismissed owner complaints as normal "drive-by-wire" operation. Warranty coverage ends at 5 years/60,000 miles, leaving owners liable for subsequent failures. Out-of-warranty transmission replacement runs $3,500–$5,060, and differential repair costs add thousands more.
Same Toyota Highlander powertrain reports on nearby years: 2006 · 2008
Failure modes owners describe
Transmission hesitation and delayed response
Engine revs but transmission delays engaging; takes 1-2 seconds or more to respond when accelerator is depressed. Occurs when accelerating from a stop, after slowing down, or when merging into traffic. Vehicle sometimes enters neutral-like state with no power delivery despite high RPMs.
When: From purchase or early ownership (16K-45K miles on new vehicles); recurring intermittently throughout ownership
Symptoms owners cite: Delayed acceleration response after depressing gas pedal; Engine revs without corresponding wheel power; Vehicle behaves as though in neutral despite throttle input; Hesitation worse during city driving and low-speed maneuvers; Dangerous gaps during merge attempts and intersection crossing
Repairs/costs cited: ECM reprogramming attempted on multiple vehicles without resolving issue; transmission fluid changes and computer updates ineffective; dealers unable or unwilling to replicate or diagnose; some owners report ECM replacement refused by Toyota; transmission replacement costs cited at $5000+; some dealers claimed normal operation and no parts replaceable
Recalls/TSBs owners mention: Toyota dealers stated this is normal operation for 'drive-by-wire' system and falls within design parameters; ECM reprogramming performed but problem recurred; TSB issued June 3, 2005 for transmission recalibration; multiple TSBs issued for transfer case seals (November 2007, May 2010); Toyota refused to acknowledge defect in corporate communications; denied warranty coverage once powertrain warranty (5yr/60K mi) expired
Transmission jerking, bucking, and harsh shifts
Transmission shifts erratically with noticeable jolting, bucking, or shuddering when engaging gears. Shift quality is inconsistent—sometimes smooth from a dead stop, but jerky during re-acceleration after slowing. Vehicle lurches forward suddenly after hesitation.
When: Present from first month of ownership through extended mileage; worsens over time
Symptoms owners cite: Jolting and jerky shifts, especially during acceleration; Vehicle bucks or shudders when transmission engages after hesitation; Inconsistent shift quality between different driving scenarios; Hard shifts between 2nd and 3rd gear in particular; Transmission cannot decide which gear to select; Surging effect when applying brakes
Repairs/costs cited: Dealers claim no repairs needed; transmission fluid inspected and changed without fixing issue; computer/ECM updates applied ineffectively; transmission replaced in at least one case (still exhibited problem post-replacement); no permanent solution identified
Recalls/TSBs owners mention: Dealers dismissed complaint as normal for electronic transmission or driver adjustment issue; claimed transmission learning driver habits; Toyota corporate acknowledged transmission computer issues in limited instances; no recalls issued for Highlander (unlike RAV4); TSBs issued but problem persists across model year
Sudden or uncontrolled acceleration
Vehicle accelerates unexpectedly without driver input or accelerates excessively despite brake application. In one case, parked vehicle shifted itself out of Park into Drive and rolled into woods. Another instance involved extreme acceleration after multiple gas pedal applications while parked.
When: Intermittent; one reported while vehicle was idling in park for 10-15 minutes
Symptoms owners cite: Unexplained rapid acceleration; Inability to control acceleration with brake pedal; Vehicle shifted from Park to Drive without driver action; Engine accelerated excessively after delayed response to gas pedal input
Repairs/costs cited: Vehicle repaired after collision; Toyota denied any computer malfunction responsibility
Recalls/TSBs owners mention: Toyota dealer and regional manager denied possibility of occurrence; claimed not related to known gas pedal investigation; no diagnostic codes logged according to Toyota
Transfer case and differential fluid leaks
Seals on transfer case and differentials (front and rear) fail, causing rapid loss of gear oil and transmission fluid. Leaks occur at inspection plugs, gaskets, and vent lines. Loss of fluid can lead to complete differential failure and potential loss of vehicle control.
When: 45K miles on newer vehicles; 62K-99K miles on used vehicles; recurring within months after repair
Symptoms owners cite: Fluid puddles under vehicle; Leak at transfer case or differential seals; Rapid fluid loss within 2000 miles of service; Smoking and burnt fluid smell from leaking onto exhaust; Leaking from transmission vent onto exhaust pipe
Repairs/costs cited: Transfer case replaced twice and transmission replaced with remanufactured unit on one vehicle; gasket and inspection plug replaced; seal leaks recurred despite multiple dealer repairs; owners report dealer lack of proper tools for seal repair; fluid vent issues addressed by seal/gasket replacement
Recalls/TSBs owners mention: TSB issued June 2005; multiple TSBs for transfer case seals issued (November 2007, May 2010); warranty covers 5yr/60K miles on powertrain, leaving owners liable after expiration despite known issue; Toyota withheld TSB information from consumers during warranty period; refused reimbursement for out-of-warranty repairs
Differential catastrophic failure
Front differential lost all fluid and seized while vehicle traveling at highway speed, causing sudden loss of power (65 mph to 30 mph) and loss of steering control in dangerous traffic situation. Seal leak drained differential completely between services.
When: 65,220 miles; previous service at 63,226 miles showed no leakage
Symptoms owners cite: Instantaneous speed loss on highway from 65 mph to 30 mph; Complete loss of forward power; No fluid remaining in differential despite service 2000 miles prior; Subsequent rear differential inspection plug also leaking rapidly
Repairs/costs cited: Front differential/transfer case assembly replaced; rear differential gasket and inspection plug replaced
Recalls/TSBs owners mention: No manufacturer response documented; dealer attributed to seal leak failure
Transmission fluid leakage from vent and bearing failure
Transmission fluid forced out through vent line or internal bearing failure causing fluid loss and potential catastrophic transmission damage. Bearing degradation may be root cause.
When: 90,000 miles
Symptoms owners cite: Transmission fluid leaking from vent; Fluid loss without external seal failure visible; Internal bearing degradation
Repairs/costs cited: Bearing failure suspected as cause; covered under extended warranty for certified used vehicle
Complete transmission failure
Transmission stops functioning entirely, with sudden downshifting and loss of forward power. Vehicle loses all ability to move, requiring towing. One case involved transmission failure while descending steep mountain grade.
When: 96,000 miles; 3 months/low mileage on one vehicle; 120,000 miles on another
Symptoms owners cite: Sudden loss of forward power while driving; Unexpected downshifting, difficulty retaining control on inclines; Vehicle unable to move under own power; Transmission slipping, particularly between 3rd and 4th gear
Repairs/costs cited: Transmission replacement required, cost $3500+; one customer quoted $5060 for replacement after only 15 months ownership; ECM upgrades did not prevent failure
Recalls/TSBs owners mention: Toyota offered 0.10% discount on repair costs; no warranty coverage for failures outside standard powertrain warranty; dealer stated replacement was only option
Differential and transmission failure cascading
Front differential catastrophic failure triggers automatic transmission destruction. Differential grinding/crunching sound heard, followed by total transmission damage.
When: 35 mph cruising speed
Symptoms owners cite: Sudden deceleration and loud gear-grinding/crunching sound; Vehicle reduced to 1 mph crawl; Front differential suffered major failure; Automatic transmission destroyed as result
Repairs/costs cited: Mechanics concluded major differential failure ruined transmission; vehicle disabled completely
Synthesized from 46 NHTSA owner complaints — unverified consumer allegations, summarized for patterns. The verbatim filings appear below.
What owners are reporting 7 most recent
I have a 2005 highlander that developed a transmission fluid leak at 62,000 miles. Toyota currently has a service bulletin out stating that the transmission seal on certain AWD highlanders and siennas are prone to premature failure. This can result in leak of transmission or front differential fluid. The repair is not being covered under the warranty for me since the car is beyond the 60000…
Recurring issue: while traveling at both highway and city street speeds, the driver attempted to pass by fully depressing the accelerator and the vehicle failed to accelerate for approximately 1-2 seconds. This has resulted in near-miss accident/injury incidents. The dealer was contacted and stated this was a routine complaint for this vehicle and the Lexus rx-330. The manufacturer, Toyota…
My 2005 Toyota highlander developed a leak from the transfer case, which has the potential to cause a complete loss of transmission fluid as well as loss of steering control. There are documented accidents which have occurred as a result of this problem. This repair would normally be covered by a 5 year/60,000 mile power train warranty however the leak was discovered a few months after the 5…
Car is a 2005 Toyota highlander ltd. V-6 4wd with 5-sp auto. Engine hesitates severely when asked to accelerate hard at speeds seemingly between 15 and 70 MPH. (these are speeds I've noticed it) when you "floor" the throttle to quicky merge with traffic or turn across a line of oncoming traffic, there is a rather long delay before vehicle begins to accelerate. This behavior also occurs exactly…
My highlander has 120,000 miles on it and the transmission suddenly gave out while driving on the highway. It started by downshifting suddenly, making it difficult to retain control of the vehicle. Then I lost all forward power and had to coast to a stop on the side of the interstate. I am now stuck paying a $3500+ repair bill despite keeping up on regular maintenance according to the…
Automatic transmission hesitation - when needing to accelerate quickly (as when entering a freeway) after slowing down or coasting, the transmission has downshifted to a too-low gear or neutral. The engine speeds up to approximately 5000 RPM without increasing the car speed. Letting up on the gas and accelerating more easily allows the vehicle speed to increase. So far, this hesitation has not…
I own a 2005 Toyota highlander v6. I'm experiencing a pause or hesitation shifting into low at very low speeds (2 to 4 MPH). The hesitation causes the vehicle to lunge because the gas peddle is depressed before the low gear engages. I feel it is an unsafe design because in slow traffic or near pedestrians I need to keep my left foot on the brake to prevent the car from lunging. Toyota has…
Had powertrain trouble with your 2005 Toyota Highlander?
File a complaint with NHTSA → It's free, official, and how every report above got here — owner filings are the federal safety record this page is built on.
Common questions
How serious is the powertrain problem on the 2005 Toyota Highlander?
It's a documented issue but not catastrophic. 46 complaints have been filed. Repairs average $2,500 and most owners catch it before it causes a breakdown.
At what mileage does the powertrain typically fail?
Across the 28 complaints that reported odometer mileage, most powertrain failures cluster between 15,000 and 90,000 miles, with the median around 57,000. A quarter of owners report trouble before 15,000; a quarter make it past 90,000. Maintenance history matters more than the odometer alone — this is the reported failure window, not a guarantee.
What does it cost to fix?
Independent shops typically charge around $2,500 for powertrain repairs on this vehicle. Dealer pricing tends to run 20-40% higher. The exact figure depends on the specific failure mode, parts availability, and your local labor rates. If you're outside factory warranty, an extended service contract often covers this category.
Are there any recalls related to powertrain?
No active recalls currently cover powertrain issues on this vehicle. The complaints filed represent owner-reported failures that haven't risen to the level of a manufacturer-issued recall — but they're still worth knowing about before you buy or budget for repairs.
Related
Complaint and recall data sourced from the National Highway Traffic Safety Administration (NHTSA)
public records database. Verify the raw federal record at
nhtsa.gov/vehicle/2005/Toyota/Highlander.
Severity ratings are derived from reported crashes, fires, injuries, and fatalities. Repair cost estimates are
independent-shop national averages and may differ in your area. Some links on this page are affiliate links.