A two-seater all-terrain vehicle (ATV) has straddle-type driver and rear passenger seats, and a pair of movable rear footrests to support the feet of a rear passenger. The rear footrests pivot from a stowed non-supporting position to a supporting position. When folded into the non-supporting position, the rear footrests become substantially flush with side paneling of the vehicle. The all-terrain vehicle may further include a pair of vertical and horizontal adjustment mechanisms for independently vertically adjusting each of the rear passenger footrests so that passengers of varying height can be comfortably accommodated on the rear seat. A cargo space is provided under the passenger's footrest, the cargo space being enlarged when the passenger's footrests are in the stowed position. Restraints and other holding mechanisms are also provided. The flip-down adjustable rear footrests may be used on other types of straddle-type recreational vehicles.