Wolfsburg were relegated from the Bundesliga last season after nearly 30 years in the German top flight, and Bernhardsson will be tasked to getting the former champions back where they believe they belong.
Bernhardsson is therefore remaining in the German second tier, having helped Holstein Kiel to a mid-table finish in 2. Bundesliga in 2025/26 with 15 goals and 14 assists in all competitions.
That form earnt the 27-year old a place in Graham Potter's squad for the World Cup, where he started all three of Sweden's group stage matches in Mexico and United States.
He joins Die Wolfe on a contract until 2029, with the transfer fee reportedly in the region of €5 million.
"I am very happy that the move is complete and that I am here. When I heard about Wolfsburg's interest, it was special for me. This is the right step for me," Bernhardsson told the club website.
Eliasson heads to Brazil on loan
One Swedish international not involved in North America this summer was Niclas Eliasson, and to get himself back in Potter's thinking, has made a move to South America.
The 30-year-old has gone out on loan from parent club AEK Athens to join Internacional, which will make him the first Swedish player to play in the Brazilian top flight, Serie A. The move is a logical one for Eliasson, who was born in Falkenberg to a Swedish father and a Brazilian mother.
The former AIK and Norrkoping winger, who has spent time in England and France, has made over 100 appearances for the Greek side. His loan expires in June 2027, but Internacional have an option to buy.