The differential swelling seen between softwood opposite wood (OW) and its neighbouring compression wood (CW) developed in branches prompts several engineering issues such as dimensional instability and cracking. For a more efficient use of resources, the inevitable CW and OW should not be discarded or used as fuel, but incorporated into engineered wood products. Swelling is a hygroelastic phenomenon, where both the swelling and elastic properties of CW and OW are needed in order to make proper structural predictions. In this paper, swelling coefficients and moisture dependent elastic moduli for both CW and OW in the three principal material directions are provided along with measurements of moisture content, density, and microfibril angle. The small deformations necessitate the use of precise X-ray micro-computed tomography for measurements. The results indicate that CW and OW from Norway spruce branches differ in swelling, especially in longitudinal direction at low moisture content. It is noted that CW is a wood type with less pronounced anisotropic behaviour than both OW and normal wood from the stem, with the elastic moduli less sensitive to moisture changes in both longitudinal and transverse directions.