An 87th minute penalty rebound strike from substitute Hernan Crespo failed to save Argentina from a World Cup exit.
The tournament favourites went out as the South American side stormed the Swedish goal in the second half.
Ariel Ortega won the penalty after a tackle by substitute Jonson and his spot kick was saved by Magnus Hedman but Crespo followed up to convert the chance.
Argentina did everything but score after Andreas Svensson smashed in a high free kick in the 59th minute with the Swedes only chance of the game.
Going behind saw Crespo replace veteran Gabriel Batistuta as he joined the siege of the Swedish goal.
Javier Zanetti had a shot cleared off the goal line by John Mjallby and then hot a shot over from distance but Sweden held out.
Argentina overwhelmed Sweden in the first half but could not score.
Juan Pablo Sorin forced a good save from goalkeeper Magnus Hedman and the right back also set up Gabriel Batistuta for a shot just wide from a free kick in the 19th minute.
Sorin also headed well just over the cross bar with Claudio Lopez firing a great shot from wide on the left just over the angle of bar and post as Sweden defended with two banks of four and offered nothing in attack.
Lopez had earlier hit another flashing shpt just over the bar but the first half ended bizarrely.
Substitute Claudio Caniggia was red carded while sitting on the bench for dissent in the 44th minute.
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