An all-terrain vehicle with improved stability is provided. The all-terrain vehicle includes a frame that is substantially centered on a longitudinal centerline of the vehicle, an engine, a plurality of wheels that are attached to a front axle and a rear axle, a handle bar that is operatively connected to at least two of the wheels, and a straddle seat. A fuel tank is fluidly connected to the engine, and is disposed forward of the rear axle, substantially above a rear suspension pivot point, and below the seat, and is substantially centered on the longitudinal centerline, thereby improving the stability of the all-terrain vehicle.