The 1998–99 Division 1 season was the 24th and last season that Division 1 operated as the second tier of ice hockey in Sweden, below the top-flight Elitserien (now the SHL).
The Allsvenskan was founded as the new second-level league for the 1999-2000 season.
The teams were given zero to five 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.