The chapter observes the development of the Slovenian welfare system from 1991 until today. The analysis is framed within three crucial time sequences. The first period, from 1991 to 1999, focuses on the process from independence to major pension reform. The second period, from 2000 to 2010, encompasses the years of economic growth until the beginning of the crisis and the subsequent adoption of labour market and social reforms. The third period is from 2010 onwards, which was marked by the implementation of the reforms and austerity measures followed by their corrections and revisions. Despite some expansions, the welfare state changes went predominantly in the direction of retrenchment and/or cost containment, especially in the last observed period. However, most recently some reversal of this trend can be observed, with the reintroduction of previous more universal or generous policy measures due to the recent economic recovery. The main challenges for the Slovene welfare system remain the demographic changes and ageing of the population, and consequently the reform of the pension system, the health care system, and long-term care, which await (additional) reforms.