"The Ambassador of His Majesty the King [Mohammed VI] to the Kingdom of Sweden was recalled to the Kingdom for consultations for an indefinite period," the ministry said on the website.
"This new offensive and irresponsible act disregards the feelings of more than a billion Muslims during this sacred period of the great pilgrimage to Mecca and the blessed feast of Eid Al-Adha."
The Swedish charge d'affaires in Rabat was also summoned to the Moroccan ministry and was informed of Morocco's "most vigorous condemnation of this offense and rejection of this unacceptable act."
Earlier in the day, media reported that the Swedish police allowed the protest action featuring the burning of a Quran near the main mosque in Stockholm. Swedish Prime Minister Ulf Kristersson said that the decision of the police was "legal but inappropriate."
Weighing into the fallout, the Turkish Foreign Ministry blasted the incident as unacceptable, with Foreign Minister Hakan Fidan accusing Stockholm of being complicit.
At the start of the year, Sweden's right-wing Stram Kurs party burned copies of the Quran in protest of the Turkish leadership, a move that subsequently caused serious issues and saw Turkiye inform Stockholm it would not be supporting its NATO membership bid.