The snap parliamentary election was called after Prime Minister Albin Kurti's party failed to form a government following the February elections.
Kurti's party is once again the favorite, but it is uncertain whether it will gain a majority.
The stalemate is the first of its kind since Kosovo declared independence from Serbia in 2008. As a result, no budget has been approved for next year, raising concerns about the country's already strained economy.
"We expect a better situation than what we have now," says voter Suzana Simnica, 53, after casting her vote in the capital Pristina.
Arefik Mexhmejli, 66, believes that whoever wins "should work harder for the economy."
A new president is also to be elected in March. If that fails, another election is expected.
Sweden is one of just over a hundred countries that recognize Kosovo as independent, which Serbia still does not.
