This article examines the contemporary Swedish policy responses to increased cultural and linguistic diversity in the field of early childhood education and care (ECEC). More specifically, it explores how national authorities and organizations initiate collaborations, use and produce policy knowledge and identify priorities and challenges. The analysis draws on a review of policy texts and in-depth interviews with high-level policy actors who act as an epistemic community. Using the concepts of representations and problematization, this study connects the generation of policy knowledge on diversity with the identification of solutions to address cultural and linguistic diversity. The findings suggest a consensus over the definitions of priorities for diversity policies in ECEC within this epistemic community. A core priority is emphasizing the importance of the Swedish language within a wider multilingual approach linked to increased participation in preschools, and to discourses of school readiness and societal integration. Yet, there is a tension between identifying policy priorities and structural challenges at different levels. Unequal conditions, residential segregation and lack of educated preschool staff present difficulties that require a more comprehensive approach than those taken by the official policy frames.