The capital city of Sweden is Stockholm. It is also the largest city in Sweden and the Nordic countries. Stockholm is situated on 14 islands where Lake Mälaren meets the Baltic Sea and is known for its rich history, cultural landmarks, and vibrant economy. The city serves as Sweden's political, economic, and cultural center and hosts the annual Nobel Prize ceremonies. It is sometimes called the "Venice of the North" due to its waterways and numerous bridges. Stockholm is also home to several UNESCO World Heritage sites and is a major hub for innovation and international trade. Thus, the capital city of Sweden is Stockholm.