Introduced in early 2018, the fifth-generation Avalon (XX50) is built on the modular TNGA-K platform. The design became even more daring, dominated by a massive grille that takes up almost the entire front bumper. The new platform provided a lower center of gravity, increased chassis rigidity, and significantly improved handling. The powertrain lineup included an upgraded 3.5-liter V6 (301 hp) paired with a new 8-speed automatic transmission, as well as an updated hybrid system based on a 2.5-liter engine (215 hp combined). For the first time, an Adaptive Variable Suspension (AVS) was available on select trims.

In 2020 (for the 2021 model year), Toyota introduced all-wheel drive to the Avalon for the first time, available exclusively with a 2.5-liter four-cylinder engine (205 hp). The interior stood out with a 'floating' center console featuring a large touchscreen, Apple CarPlay support, and a premium JBL audio system. A sporty TRD trim was introduced in 2019, complete with an aggressive body kit and lowered suspension. Despite its impressive features, declining demand for large sedans led Toyota to end Avalon production for North America in 2022, though manufacturing continued in China.