The breeding blanket with integrated first wall (FW) is the key nuclear component for power extraction, tritium fuel sustainability, and radiation shielding in fusion reactors. The ITER device will address plasma burn physics and plasma support technology, but it does not have a breeding blanket. Current activities to develop “roadmaps” for realizing fusion power recognize the blanket/FW as one of the principal remaining challenges. Therefore, a central element of the current planning activities is focused on the question: what are the research and major facilities required to develop the blanket/FW to a level which enables the design, construction and successful operation of a fusion DEMO? The principal challenges in the development of the blanket/FW are: (1) the Fusion Nuclear Environment – a multiple-field environment (neutrons, heat/particle fluxes, magnetic field, etc.) with high magnitudes and steep gradients and transients; (2) Nuclear Heating in a large volume with sharp gradients – the nuclear heating drives most blanket phenomena, but accurate simulation of this nuclear heating can be done only in a DT-plasma based facility; and (3) Complex Configuration with blanket/first wall/divertor inside the vacuum vessel – the consequence is low fault tolerance and long repair/replacement time. These blanket/FW development challenges result in critical consequences: (a) non-fusion facilities (laboratory experiments) need to be substantial to simulate multiple fields/multiple effects and must be accompanied by extensive modeling; (b) results from non-fusion facilities will be limited and will not fully resolve key technical issues. A DT-plasma based fusion nuclear science facility (FNSF) is required to perform “multiple effects” and “integrated” experiments in the fusion nuclear environment; and (c) the Reliability/Availability/Maintainability/Inspectability (RAMI) of fusion nuclear components is a major challenge and is one of the primary reasons why the blanket/FW will pace fusion development toward a DEMO. This paper summarizes the top technical issues and elucidates the primary challenges in developing the blanket/first wall and identifies the key R&D needs in non-fusion and fusion facilities on the path to DEMO.