This article contributes to discussions about the problem of evil and Schelling studies by analysing Schelling's conception of the problem in his 1809 Freiheitsschrift essay. I explicate Schelling's critical response to four classic solutions to the problem (embodiment, degree, dualism, and divine forms) and outline his positive solution. My thesis is that Schelling offers a unique theodicy by arguing for a dialectical conception of the infinite omnipotence of God. In contrast to traditional notions of the infinite as the opposite of the finite, Schelling claims that God is only truly infinite if also embodied in the finite, an embodiment enacted through the human freedom to do evil. To explore Schelling's project, I draw parallels between his account of God's omnipotence and Hegel's ‘good infinite’ and situate Schelling's thesis within Mackie's discussion of the problem of evil in ‘Evil and Omnipotence’.