Sweden's governing centre-right alliance has been re-elected, but is short of an overall majority, official preliminary results show.
They show PM Fredrik Reinfeldt's four-party coalition won 173 seats out of 349 in parliament.
The far-right Sweden Democrats are said to have gained more than 4% of the vote, enabling them to enter parliament for the first time.
Mr Reinfeldt declared victory and said he would seek support from the Greens.
The Social Democrat-led opposition leader, Mona Sahlin, has conceded defeat.
"We were not able to win back confidence," she told supporters. "The Alliance is the largest majority. It is now up to Fredrick Reinfeldt how he plans to rule Sweden without letting the Sweden Democrats get political influence."
Mr Reinfeldt said previously he did not want to speculate on how his Alliance for Sweden coalition would deal with the anti-immigration Sweden Democrats if they got into parliament.
But both main political blocs have said they would rather co-operate with each other than form a coalition with a party which they say is racist and xenophobic.
BBC regional reporter Damien McGuinness says the Sweden Democrats appear to have tapped into voter dissatisfaction over immigration.
Immigrants make up 14% of the country's population of 9.4 million.
The largest immigrant group is from neighbouring Finland, followed by people from Iraq, the former Yugoslavia and Poland.
The centre-left Social Democrats had ruled Sweden for 65 of the past 78 years, and are credited with setting up the country's generous welfare state.
It is the first time a conservative government has won re-election in Sweden for about a century.
From here.
I'm very sad that the idiotic Sweden Democrats got into parliament. And the arrogant assholes in the danish equivalent congratulating Sweden to becoming a normal country.
I hope it wont be too chaotic. Minority governments have worked before.