A folding exercise rack system for providing an exercise rack that may be easily and compactly stored when not in use. The folding exercise rack generally includes a plurality of extension members pivotably connected to wall-connected mounting brackets. Upright support members connected to the extension members support a barbell and exercise bar. The exercise rack is pivotable from an extended exercise position into a plurality of selectable compact storage positions substantially parallel with and closely adjacent to the wall. The mounting brackets include a plurality of selectable connection points to determine how much space is present between the wall and exercise rack in the storage positions. One connection point allows a retractable exercise bench to be stored in the space between the wall and exercise rack. Mechanisms are provided for locking the exercise rack in a plurality of selected positions.