The regulation of subsidies under the framework of the World Trade Organization (WTO) has undergone significant evolution since the establishment of the General Agreement on Tariffs and Trade (GATT). Initially focused on tariff reductions, early GATT provisions regarding subsidies were limited in scope and clarity, leaving critical gaps in addressing the trade-distorting effects of government interventions. As global trade dynamics became increasingly complex, the need for a robust regulatory framework became evident, leading to the adoption of the Agreement on Subsidies and Countervailing Measures (SCM Agreement) during the Uruguay Round.This article provides a comprehensive exploration of the historical development and regulatory framework governing subsidies under WTO law, emphasizing the intricate balance between preventing trade distortions and allowing governments the flexibility to achieve legitimate social and economic objectives. By analyzing the evolution of legal norms—from the early provisions of GATT Articles VI and XVI to the establishment of the SCM Agreement—this study sheds light on how subsidy regulation has addressed the dual challenges of safeguarding market access and supporting domestic policy goals.