The accident occurred at 1pm on Monday after the driver of the car failed to notice the bus when pulling out onto Husebyvägen in the small town of Vislanda.
The car was completely destroyed after crashing into the side of the bus, while the larger vehicle swerved into a tree at the side of the road.
Around twenty passengers were travelling on the bus at the time, five of whom were left needing hospital treatment. All three people travelling in the car were also taken to hospital.
Police sad they did not suspect foul play.
“Not at the moment. We’re going to question everybody involved to clarify what happened. We’re also going to investigate whether the passengers in the bus had their seat belts on,” said spokesperson Carina Berggren.