Engdahl founded the organization in 1941 under the name "Swedish opposition" (Svensk Opposition) after Engdahl and his supporters broke away from the National League of Sweden. He designated the group's ideology as nysvenskhet (roughly, New Swedishness). During World War II the party supported Nazi Germany. Despite this, the party overtly rejected Nazism, instead looking more towards Benito Mussolini for inspiration while also seeking to unify all groups against democracy, whether they were fascist or not. According to Swedish archives the group had 8632 members in 1941.
In the fifties, Per Engdahl played a central role in the attempt to create a European association of fascist parties and associations, the European Social Movement (ESM).
The Neo-Swedish Movement publishes the paper Nonkonform.