This thesis explores the effects of return migration on development through the case of returnees from Sweden to Bosnia and Herzegovina. Based on thirteen in-depth interviews and observation, it examines returnees’ ‘social remittances’, which consist of ideas, practices, and social capital (or social connections) that migrants bring to their countries of origin. The thesis adopts a transnational perspective highlighting returnees’ simultaneous connections in their host and home countries. It identifies various types of social remittance transfers such as ideas and practices in the areas of health, the environment and work, as well as social connections with investors, business partners, and political and academic actors in Sweden. One major finding is that returnees’ knowledge of the Swedish language, the market, work and business culture contribute to building trust with actors in Sweden, which facilitates trade and investment between the countries. The thesis also highlights a number of economic, political and personal constraints faced by returnees in their return process which, in turn, affect their capacity to transfer social remittances. It concludes that returnees can potentially contribute to development, but their contributions are largely conditioned by the existing social, economic, legal and political environment.