Background: The objective of this paper was to analyse whether different groups of foreign-born individuals have a higher risk of self-reported, long-standing, psychiatric illness or an increased intake of benzodiazepines when compared to native Swedes. Methods: The present cross-sectional study is based on eight simple random samples of people aged 25-74 years who participated in the Swedish Survey of Living Conditions. It was analysed by unconditional logistic regression in order to estimate odds ratios of psychiatric illness, based on 36,890 persons interviewed in 1986-1993 and intake of benzodiazepines, based on 9,352 persons interviewed in 1988-1989. Furthermore, the population prevalences were also calculated. Results: Migrants from Southern European countries and men from Eastern Europe and non-Westernized countries outside Europe showed an increased risk of self-reported, long-standing, psychiatric illness. Moreover, female migrants from Eastern Europe and non-Westernized countries outside of Europe and Finnish-born men demonstrated an increased risk of intake of benzodiazepines when compared to native Swedes. Conclusions: Our hypothesis that socioeconomic factors (low educational level, living alone, poor social network and poor economic resources) could explain the relation between the migrants' country of birth and psychiatric illness proved to be wrong. Country of birth, which is closely related to the migration process and acculturation stress, is an independent factor on its own associated with an increased risk of long-standing, psychiatric illness.