A foldable sofa-bed includes: a base with an internal cavity and a rear member; a foldable bed that includes separate and distinct head, intermediate and seat sections, each with a respective cushion, wherein in a folded position, the intermediate and seat sections are generally horizontally disposed and positioned in vertically stacked relationship, with the intermediate and seat cushions facing generally upwardly, and the head section is generally vertically disposed and positioned adjacent the rear wall of the base, and in an unfolded position, the head, intermediate and seat sections are generally horizontally disposed in serial alignment; and a bed folding mechanism that is attached to the base and the head, intermediate and seat sections that controls the movement of the bed between the folded and unfolded positions. In moving from the folded to the unfolded position, the intermediate section maintains generally the same orientation.