A reclining seating unit includes: a seat; a backrest, the backrest including a frame having a top edge; a reclining mechanism attached to the seat and backrest that moves the seat and backrest between upright and reclined positions; a headrest including a headrest panel; and a headrest mechanism attached to the backrest and the headrest. The headrest mechanism comprises a plurality of pivotally interconnected links and is configured to move the headrest between a retracted position, in which the headrest panel is generally horizontally disposed and overlies the top edge of the backrest frame, and an extended position, in which the headrest panel is vertically disposed and is separated from the top edge of the backrest frame. Movement of the seating unit from the upright position to a reclined position moves the headrest from the retracted position to the extended position. The headrest mechanism comprises: a connecting link pivotally connected to the reclining mechanism; a rear extension link pivotally connected to the connecting link; a front extension link pivotally and slidably connected to the connecting link; a headrest mounting bracket mounted to the headrest panel, the headrest mounting bracket being pivotally interconnected to the front and rear extension links; and a control link pivotally interconnected with the backrest frame, the front extension link and the connecting link. In this configuration, the seating unit can include a headrest that can be employed with chair styles that have a relatively low and narrow backrest.