Olsson, a native of Stockholm, was one of the most renowned organ virtuosos of his time. He studied organ with August Lagergren (1848−1908) and composition with Joseph Dente (1838−1905), both teachers having been employed at the Royal Swedish Academy of Music. Later Olsson himself joined the faculty there, becoming teacher of harmony (1908–24) and then organ (1924–45). Meanwhile he was also the organist at the Gustaf Vasa Church in Stockholm. He became a member of the Swedish Royal Academy of Music in 1915.

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