This study offers a comprehensive comparative analysis of labour market integration policies for refugees in Sweden and Germany following the 2015 refugee crisis. Adapting an institutional approach that includes new historical institutionalism, rational choice institutionalism and sociological institutionalism, this study analyses the policy changes in both countries. The research design is a most similar design to compare and find differences and similarities in both countries, and the methodology is a qualitative comparative analysis. The research concentrates on the elements of policy change – displacement, layering, conversion and drift- to explain the modifications in response to the crisis. The study reveals significant similarities and differences between the two countries. Both Sweden and Germany implemented strategies to support refugee integration into the labour market, although with different approaches. The historical legacies, societal perspectives, and institutional frameworks of each country influenced the execution of these policies.