With record-breaking numbers of refugees reaching Europe, researchers have documented the reactions among the citizens of the receiving countries, but much less is known about the refugees’ attitudes and behavior. Individuals in this group have gone through drastic changes by leavening their home countries, been through an often perilous journey and are in the process of seeking to join a new society. Our purpose is to examine how refugees’ social and institutional trust evolves during the asylum-seeking process. We focus on social trust because it is related to a number of desirable outcomes such as civic engagement and on institutional trust because it is associated with the government’s legitimacy and effectiveness. To study the dynamics of social and institutional trust, we have recruited a unique panel of asylum-seekers who recently arrived in Sweden (N = 400). Using this multi-wave data, we examine effects of housing arrangements, family situation, health, happiness and personality traits, among other factors. Besides addressing an important research gap, our results have policy implications for the integration of refugees in the receiver-countries.