There is much to be learned about galaxy formation and evolution from our own Milky Way halo and the dwarf galaxies around it. Resolved stellar spectroscopy presents us with `archaeological` evidence about the chemical enrichment of the interstellar medium back to the earliest times. In this talk I will discuss several insights in the (chemical) evolution of the dwarf galaxies around the Milky Way from both modeling and observational perspectives. I will show that the classical dwarf galaxies are not so devoid of extremely low-metallicity stars as was previously thought and discuss how well we can represent the dwarf satellite system by semi-analytical prescriptions in fully cosmological simulations.