A folding wagon having a basket within which to carry articles and/or small children and a collapsible frame to enable the wagon to be folded between an expanded open configuration at which the basket is outstretched and a compact closed configuration at which the basket is collapsed. The wagon also has pairs of front and rear wheels that are spaced outwardly from the front and rear of the wagon so as to lie ahead of and behind the basket. A handle is connected to the top of the basket at the front of the wagon. When the wagon is folded to its compact closed configuration, the pairs of front and rear wheels are positioned in axial alignment to facilitate transport and/or storage. With the wagon folded, the axially-aligned pairs of wheels and the handle form a stand for supporting the wagon in an upright position.