The review examines the recent literature on German federalism. This literature has identified a decentralized, federal tradition in German history, dating back at least to the eighteenth century and in striking contrast with the ‘unitary’ traditions of the Prussian state. The review questions the extent to which centralization was indeed a Prussian phenomenon in German history by examining the relatively decentralized nature of the Prussian state and the strongly centralizing tendencies of smaller German states in the nineteenth century. The review also examines the origins of the new ‘federal’ historiography, both in terms of contemporary German politics and in terms of the political debate surrounding German unification in the 1860s. It concludes that the idea of a ‘unitary’ Prussian state tradition is simplistic and reflects the inherent anti-Prussian bias of German federalism in the unification era. In this sense, it is the federal counterpart of the better-known Borussian approach to German history.