In his review for AllMusic, critic Stephen Thomas Erlewine said Hits serves as both a great overview of the group and "a convincing argument that they were one of the best contemporary R&B bands of the early '90s". Matt Diehl of Entertainment Weekly argued that the album showcases the band's visionary mix of modern and classic soul, which "paved the way" for singers such as Maxwell and D'Angelo: "You won't find a more ebullient collection of jams anywhere else".
In his book Consumer Guide: Albums of the '90s (2000), Robert Christgau wrote that Tony! Toni! Toné! peaked only with House of Music in 1996, and "this one merely creates the illusion that they always had it in them to match easy pop funk like 'Feels Good' and 'Little Walter' with come-ons like the opportunistic 'Thinking of You' and the steadfast—a whole year, gosh—'Anniversary.'" Fred Schruers wrote in The Rolling Stone Album Guide (2004) that Hits is the best of the band's compilations because of its length and tasteful packaging, although the lyrics are poorly transcribed in the booklet.