Disclosed is a folding wagon having a frame that is folded from an expanded configuration at which a variety of articles are carried in a basket to a compact collapsed configuration at which to facilitate the storage or transport of the wagon. A removable canopy is held above the basket by a plurality of hollow mounting posts that are pivotally connected to respective corner brackets mounted on the frame and a corresponding plurality of telescoping canopy support rods that engage the canopy and slide through the hollow mounting posts to adjust the distance between the canopy and the basket. The canopy support rods are disengaged from the canopy to separate the canopy from the wagon, and the pluralities of mounting posts and canopy support rods are rotatable together relative to the wagon frame between a first position standing upwardly from the basket and a second position lying alongside the basket.