Despite increasing interest in the Nordic model of welfare states, few studies focusing on the Finnish case have been conducted. While Finland shares the common characteristics of the Nordic model such as consensual democracy, coordinated market economy and universal welfare states, it also demonstrates a number of distinctive features grown up from the unique path of its modern political history. Filling the gap in the literature, this article provides with a systemic analysis of the formation and change of the Finnish welfare state, focusing on the linkage and interaction among political institutions, welfare regime, and individual social policies such as education policy. First, it analyzes the common features and differences between Finland and the other Nordic countries from a comparative perspective. Second, the process of formation, development, and reform of the Finnish welfare state is analyzed from a historical-political perspective. Third, the linkage and interaction between the politics of welfare state building and comprehensive educational reforms, implemented on a newly established political consensus since the 1960-70s, are examined. The conclusion discusses theoretical and practical implications of the Finnish welfare state.