A full international between 1991 and 1996, he won 22 caps for the Sweden national team and represented his country at UEFA Euro 1992 and at the 1994 FIFA World Cup where Sweden finished third.

Nilsson played for a local club called Tomtens IF and IFK Falköping until 1987 when he moved to IFK Göteborg, where he stayed until he ended his active career in 2001 due to an eye injury.

He also won six Swedish Championships with the club and played in several European competitions.

[1] Nilsson played 22 international matches for the Sweden national team, and was part of the UEFA Euro 1992 and 1994 FIFA World Cup squads, he did however not play any matches in any of the tournaments.

[2] In ITV's Greatest Champions League Goals programme, Nilsson's two strikes against PSV Eindhoven were number twenty and nineteen on the list of the top 50 goals, including a magnificent free-kick with an insane amount of curve, which probably is what he is best known for.