This year sees the first awarding of the Raoul Wallenberg Prize. It goes to a young Iranian Swede from Malmö, Siavosh Derakhti, who started a movement called "Young Muslims against Anti-Semitism", which aims to fight racism and increase understanding between different groups in the multi-cultural city.
"It's fantastic to get a prize like this and to be compared to Raoul Wallenberg, who is a great role model and a fantastic name for Sweden," he told Radio Sweden.
"It gives you more energy and motivation to reach out to more young people and get them to resist xenophobia and fight all kinds of racism in our country."
The Swedish Academy decided to celebrate Raoul Wallenberg Day on August 27, as that is the "name day" for Raoul in the Swedish calendar.