Described is a convertible ride-on and pull wagon toy. The toy wagon includes a wagon body having a compartment therein for storage. A plurality of wheels are rotatably connected with the wagon body for supporting the wagon body on a ground surface. An elongated seat member having a wagon end and a handle end is attached with the wagon body such that the wagon end is pivotally connected with the wagon body. A handle is connected with the handle end of the elongated seat member. The elongated seat member is pivotally attached to the wagon body to rotate between a ride-on configuration, where the elongated seat member covers the compartment and operates as a seat (and can be selectively locked in place with a lock mechanism), and a pull wagon configuration, where the elongated seat member extends from the wagon and serves as a neck for the handle.