Two goals from former Aston Villa striker Marcus Allback helped inflict a disappointing defeat on Scotland under caretaker manager Tommy Burns.
Sweden took a deserved lead when Allback side-footed home a cross from Christian Wilhelmsson.
The unmarked Hansa Rostock man tapped in from close range after the break.
Johan Elmander slotted in the third and Fredrik Berglund drove home the fourth before James McFadden scored from the penalty spot for Scotland.
The Swedes had chosen to rest big names Henrik Larsson, Zlatan Ibrahimovic and Freddie Ljungberg but still managed to be clinical in attack despite fielding a defensive line-up.
Injury-hit Scotland started nervously and Berglund had an early chance to run into the penalty box, goalkeeper David Marshall being fortunate to trap the Esbjerg midfielder's low drive under his legs.
Scotland's first opportunity came when Kenny Miller manufactured some room for himself on the far corner of the penalty box and Celtic goalkeeper Magnus Hedman did well to palm away the powerful drive.
Olof Mellberg should have put Sweden ahead when given a free header five yards out following a corner, but the Aston Villa defender's header skidded wide.
Sweden went even closer after 24 minutes, Andy Webster and Marshall getting in each other's way at another corner and Nicholson did well to head off the line.
The opening goal was only delayed two minutes, alleged Celtic target Wilhelmsson beating Kevin McNaughton for pace and dragging the ball back from the by-line for Allback to pick out the far corner of the net from 12 yards.
Scotland looked shell-shocked but came close to equalising after a superb passing movement that ended with Pearson's low cross in front of goal just evading Miller.
Fredrik Berglund (left) scored for Sweden
Marshall had to save at the feet of Allback immediately after the break.
But Allback scored his second of the evening when Kim Kallstrom's cross found the striker unmarked three yards out.
Allback's replacement, Elmander, pounced for the third after Marshall blocked Niclas Alexandersson's shot after the midfielder was found by a superb Wilhelmsson ball.
And it was four minutes later when Wilhelmsson again got behind McNaughton for Berglund to turn in the cross inside the six-yard box.
McFadden gave the Scottish fans something to cheer about from the spot after being felled himself in the area.
Scotland: Marshall, McNaughton, Murray, Anderson, Webster (Hammell 54), McNamara (Severin 64), Nicholson, Quashie (Hughes 90), Miller (Crawford 71), McFadden, Pearson.
Subs Not Used: Gordon, Pressley, Combe.
Goal: McFadden 78 pen.
Sweden: Hedman, Nilsson (Ostlund 63), Mellberg (Hansson 46), Lucic (Linderoth 82), Dorsin, Andersson, Alexandersson, Kallstrom, Wilhelmsson (Touma 77), Allback (Elmander 65), Berglund.
Subs Not Used: Isaksson, Antonsson, Johansson.
Goals: Allback 27, 49, Elmander 72, Berglund 73.
Ref: Jaroslav Jara (Czech Republic).