This chapter presents the historical development of the Swiss welfare state, which in international comparison has long been lagging behind in terms of how generous and encompassing social protection is. This initial delay is mainly due to the strength of the institutional veto points that are present in the country (in particular, federalism and direct democracy). Paradoxically, today, Switzerland is among the most generous welfare states precisely because these veto points prevent the dismantling of the welfare state as is instead systematically taking place in other Western welfare states. It discusses the different developmental stages of the main social policies and illustrates new trends (e.g. social investment). Then, it explores the preferences of the different actors involved in this policy field (parties, unions, employer organizations, etc.) and the resulting conflict lines (economic and cultural) that arise in a modern welfare state. Moreover, the chapter discusses how this policy field is coordinated and which actors play relevant roles. The chapter closes with an overview of new challenges and prospects for welfare state research in Switzerland and embeds the Swiss case in the international literature on welfare research.