1997-98 was the 23rd season that Division 1 operated as the second tier of ice hockey in Sweden, below the top-flight Elitserien (now the SHL).
The top two teams in each group qualified for the Allsvenskan, while the remaining eight teams had to compete in a qualifying round.
The teams were given zero to seven bonus points based on their finish in the first round.
Of the eight teams in the Allsvenskan, the top two qualified directly for the Kvalserien.
The third-sixth place teams qualified for the second round of the playoffs.