The attack took place in the southwestern town of Trollhattan at a school for children aged between six and 15, shocking a nation where such violence is rare.
Media reports said the assailant was wearing a Star Wars mask, and school children initially thought it was a prank or a Halloween costume.
One teacher was found dead at the school, while a second victim died in hospital several hours later.
Swedish media reported the second victim was a young boy.
Hospital staff had previously confirmed that two boys, aged 11 and 15, were in critical condition with stab wounds, while another teacher who was seriously wounded in the attack was also being operated on.
The assailant, a 21-year-old man from Trollhattan who was shot by police at the scene, was also in critical condition, they said.
Police were alerted about the incident at 10:10 am (0810 GMT) and have already identified the attacker.
However they have not disclosed any information about him and the motive for the attack remains unclear.
When the man started attacking people, he quickly realised it wasn't a joke and fled as the assailant went from classroom to classroom looking for victims.
TT said several knives were used in the attack.
Police said there was "a lot of confusion" at the school, saying there were still pupils and teachers inside more than two hours after the attack.
Swedish media described it as a "problem school".
It had been criticised by the Swedish Schools Inspectorate for its lax security and on account of a number of disruptions which prevented the pupils from learning.
Teachers had complained to the inspectorate about the school library and cafe being open to the public and creating an insecure environment for the children, TT reported.
Swedish Prime Minister Stefan Lofven was expected to visit the town later today, parliament's Twitter account said.
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