The capital city of Sweden is Stockholm. It is the most populous city in Sweden and the largest urban area in the Nordic countries. Stockholm is built on fourteen islands where Lake Mälaren flows into the Baltic Sea, giving it the nickname "Venice of the North." It serves as the cultural, media, political, and economic center of Sweden and is home to the Swedish government, the official residences of the monarch and prime minister, and many of the country's largest companies. Stockholm is also known for its historical sites, museums, and vibrant cultural life. In summary, Stockholm is the capital city of Sweden.