With the case of Sweden as its focus, this article contributes to the research on state–Islam relations in Europe. From a comparative European perspective, it demonstrates that Sweden departs from what is generally presented as the common pattern when it comes to when, how and why state-Islam relations were first established. Previous theorising on this topic, primarily connected with Jonathan Laurence’s seminal work on state–Islam relations in Europe, argues that such relations follow two phases, namely (1) Embassy Islam (1960–1990) and (2) the institutionalisation of domestic relations with (national) Muslim Councils (1990-onwards). Our conclusion, however, is that Sweden skipped the first phase and went directly to the second in the mid-1970s. This, we argue, can be explained as the (unplanned) result of a general change in church–state relations in Sweden.