Higher education in German-speaking countries has a historical claim to be a distinct system, one which, furthermore, exerted considerable influence on other national higher-education systems. This claim is linked to another model, namely the 'Humboldtian' model that was the origin of the modern university, as a place of both teaching and research enjoying a high degree of autonomy and self-direction. This chapter first examines the ideals of the 'Humboldtian university' and accounts of the reality behind it. The model has retained much of its prestige and its underlying principles (notably freedom of and unity between teaching and research) and continues to enjoy wide support within the academic community. The idea of the Humboldtian university has acted as a rallying point across two waves of post-war reform: the massification of universities from the 1970s and the more recent reorganization of higher education influenced by international trends and by new public management (NPM). This chapter discusses these reform waves in both Germany and Austria and concludes by examining some prospects and outlooks.