This paper provides an overview of Brazil’s national system of development finance and explores the use of and challenges to blended finance within this system. It shows that blended finance is still at a nascent stage in Brazil, but that Brazil’s domestic development finance institutions (DFIs) of different size and with different scope are increasingly exploring the use of blended finance. The paper argues the Brazil can capitalise on its multi-layered system of DFIs in advancing the blended finance agenda, which will require continued collaboration between international and domestic development banks, as well as with policy makers and the private sector. Efforts to build the evidence base on blended finance in local contexts will further support this agenda.