Yes, it is possible to use åäö in domain names using the IDN (Internationalized Domain Names) technology.

IDN translates, for example, trädgård.se to xn—trdgrd-cuak.se.However, users don't really need to know that the registered domain is xn—trdgrd-cuak.se because applications that support IDN automatically translate the domain name.

There may be occasions, though, when you need to know the actual domain name, such as when using older applications or when adding a domain in cPanel.

Please note that the IDN converted name may appear when sending emails with Outlook.