Known for his anthropological research of primitive man, Schwalbe considered the Neanderthal to be a direct ancestor of modern humans.
Much to the dismay of the Dutch paleontologist Eugène Dubois (1858–1940) who had discovered Java Man, Schwalbe published in 1899 the influential treatise Studien über Pithecantropus Erectus (Study of Pithecanthropus erectus).
In 1869 Schwalbe injected Berlin-blue dye into the subarachnoid space of a dog, and was the first to demonstrate that the major pathways to absorb cerebrospinal fluid were lymphatic pathways.
His name is lent to several other anatomical structures, including "Schwalbe's nucleus" or the vestibular nucleus; "Schwalbe's ring", which is a circular ridge consisting of collagenous fibers surrounding the outer margin of Descemet's membrane; and "Schwalbe's line", an anatomical line located on the posterior surface of the eye's cornea.
Paneth even acknowledged Schwalbe and used one of his drawings in his article that was published in the same journal.