The decision comes more than two years after Rakhmat Akilov, an Uzbek national, killed five and injured ten in a terrorist attack by driving a truck through crowds on Drottninggatan.
The father of the 11-year-old victim has been seeking compensation ever since, and had previously won 100,000 kronor ($10,300) in damages in the Swedish Court of Appeals.
But this fell short of the 300,000 kronor he was demanding for mental suffering as well as violation (kränkning as defined in Swedish law).
The case is unique because of the violation compensation the plaintiff was requesting. This is usually only granted to a person that was a direct victim of a crime. However, the father's attorney argued that since it was an act of terrorism, it should be viewed as affecting the victim's relatives as well.
Sweden's Supreme Court usually only grants appeals in exceptional cases or when the court feels it could set a precedent. The court found that neither of these criteria was met.
The decision means that the ruling by the Court of Appeals is upheld and cannot be appealed again.