The European Defence Fund (EDF) aims, among other things, to support cooperation in the development of defence products and technology and thereby support the efficient use of defence spending within the European Union and reduce fragmentation on the defence market. There has been concerns that EDF will allow large countries in the EU to outmanoeuvre the smaller countries and that large companies may have a greater opportunity to participate compared to smaller ones. The purpose of this study is to investigate whether there is a difference between how large and small countries or small and large companies participate in EDF and whether the projects have the potential to reduce fragmentation in the European defence market. The analysis indicates that the participation of the major countries is considerable, but seen in relation to the level of defence spending it is not disproportionate. The largest and nationally important defence companies have the largest participation and have been awarded the majority of the granted funds. However, it is not possible to conclude unambiguously that small and medium-sized companies have had less opportunity to participate. The analysis also shows that few projects meet the requirements needed to contribute to reduced fragmentation.