A seating unit that includes a foldable bed includes: a base with an internal cavity; a foldable bed that includes a plurality of sections, wherein in a folded position, the bed sections are folded relative to each other and stored within the base cavity, and in an unfolded position, the bed sections are generally horizontally disposed and in serial alignment with each other, with a first bed section being positioned forwardly of the base; a bed folding mechanism that is attached to the base and the bed sections that controls the movement of the bed between the folded and unfolded positions; a foldable leg attached to the first bed section, and a leg folding mechanism attached to the leg and the first bed section configured to extend the leg downwardly from the first bed section when the bed is in the unfolded position, and to fold the leg under the first bed section when the bed is in the folded position, the leg being pivotable about an axis that is parallel with the forward direction.