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This paper starts from the assumption that historical institutionalism has much to offer in order to address important questions raised in the literature on comparative federalism. Historical institutionalism is a useful approach to enhancing our understanding of both the origins that drive federal system dynamics and the dynamic patterns which federal systems unfold over time. The paper conceptualizes federalism as a multi-layered political order, comprising an institutional and an ideational layer. It then introduces two models of political change, the model of path dependence and the process sequencing model, and asks how each model can contribute to explain the emergence of the federal order in Canada and Germany. I conclude that while the model of path dependence lends itself well to capturing federal system dynamics in Germany, the process sequencing model, in contrast, is better suited to explaining sources and patterns of change in Canada. [ABSTRACT FROM AUTHOR]