Identity politics has been a growing phenomenon in the political sphere around the world, predominantly in western liberal democratic states. Its major attribute is the collective tendency of people from particular groups, based on religion, race, gender, ethnicity, socia lbackground etc, to form political alliance, shifting away from the broad-based party politics. Contemporary theories explain the possible outcomes of identity politics, such as undermining freedom of speech and exclusion from political participation. This research aims to study whether two Swedish political parties exert identity politics, and if the effects of this identity politics can undermine liberal democracy in Sweden. The utilized method of this research is a idea analysis, which is textual analytic method used to identify and classify various ideas in political context. The result shows that both parties, in different manner, practice identity politics which has the possibility of eroding liberal components, thus, in that manner, impair liberal democracy.