The Galactic halo is unlikely built up from galaxy populations similar to the dwarf spheroidal galaxies (dSph's) in the Local Group, but it is possible that the halo was formed by accreted dwarf galaxies that had much larger mass and higher star formation rates such as the Saggitarius dSph. Cosmological simulations show that dSph galaxies formed via hierarchical clustering of numerous smaller building blocks. Stars formed at the galaxy centre tend to form from metal-rich infall gas, which builds up the metallicity gradients. Infalling gas has larger rotational velocity and smaller velocity dispersion due to the dissipative processes, resulting the two distinct old stellar populations of different chemical and kinematic properties, which are recently discovered in the Sculptor dSph galaxy.