The elements 'liberal', 'radical' and freisinnig (an obsolete German word for 'liberal',[13] or literally "free thinking"[5]) in the party's name originate from the conflicts during the period of Swiss Restoration between the Catholic-conservative cantons and the liberal cantons.

This conflict led to the foundation of the Swiss federal state in 1848 after the victory of the predominantly Protestant and liberal cantons over the conservative and Catholic ones in the Sonderbund war.

It was not until the rise of the Social Democratic Party in the early 20th century that the FDP found itself on the centre-right.

After the 2003 elections, lawmakers of FDP and Liberal Party formed a common parliamentary group in the Federal Assembly.

At the last legislative elections, 22 October 2007, the party won 15.6% of the popular vote and 31 out of 200 seats.