After a stint with a fourth-tier men's league based out of his hometown Ånge, Sweden, Påhlsson joined the Modo Hockey organization in 1994–95, debuting in one Elitserien game. The following season, he split his time between Modo's Elitserien and junior teams. After recording 21 points over 30 junior games and 4 points over 36 Elitserien contests, Påhlsson was selected by the Colorado Avalanche, 176th overall, in the 1996 NHL Entry Draft. Following his draft, he remained in Sweden for four more years before moving to North America to begin his NHL career. Joining Modo's Elitserien team full-time in 1996–97, he improved to 17 points over 49 games. Two seasons later, he recorded an Elitserien career-high 17 goals, 17 assists and 34 points over 50 games. During his tenure with Modo, he played alongside Daniel and Henrik Sedin, who went on to become his NHL teammates in with the Vancouver Canucks in 2012.