Graham Potter's team now top Group J after Brwa Nouri's 23rd minute penalty was enough to take the three points in their maiden encounter with German opponents.
The Swedes, minnows in terms of European experience and reputation, surprised German media, who savaged the performance of Hertha Berlin.
An embarassing loss "against a theatre ensemble from Östersund", was just one of the headlines, in reference to Graham Potters' unusual methods in having his players involve themselves in the local community through cultural activities.
However, Östersund are proving themselves formidable opposition.
Östersund have reached the UEFA Europa League group stage in their debut UEFA season, having knocking out Galatasaray, Fola Esch and PAOK. They enjoyed a 2-0 win at FC Zorya Luhansk in their opening group game and are now in a strong position ahead of back-to-back fixturess against Athletic Bilbao of Spain, who lost against Zorya last night.
Östersund chairman Daniel Kindberg feels his side can conquer Europe.
I am really happy but I'm not surprised. We now know that we can play against all teams and win against all teams in Europe," Kindberg tells Swedish Radio.