A rear suspension system for an all-terrain vehicle having a chassis and at least three wheels. Two trailing arms are pivotally connected to a chassis. Each of the trailing arms includes a drive shaft bearing. A CV joint pivot arm is pivotally connected to the chassis. A CV joint housing is connected to the CV joint pivot arm. The CV joint housing includes a CV joint bearing. A CV joint is housed inside the CV joint housing and is supported by the CV joint bearing. A drive shaft extends through the CV joint and is rigidly connected to the CV joint. The drive shaft is further supported by each of the drive shaft bearings attached to the trailing arms. A shock absorption system is connected between the drive shaft and the chassis. In a preferred embodiment, a cross bar is connected between the trailing arms for stability. Also, preferably, the rear suspension system includes a sway bar and linear shock absorbers acting in combination to provide optimum suspension.