The Council for Natural and Engineering Sciences (NT) at the Swedish Research Council decided early in 2004 to evaluate the research within Swedish Condensed Matter Physics. A panel of international experts was appointed in April 2004, with a Swedish chairperson as well as a Swedish secretary. The expert panel was provided with written reports by the research groups and divisions in Sweden working within the area. Site visits took place during December 2-10 2004. During this time, the groups under review presented their research activities to the panel. The present document reports the findings and recommendations of the expert panel.