The Nirvana frontman - who died in April 1994 - wore the garment during the band's MTV 'Unplugged' performance in 1993, and the stained cardigan has not been cleaned since.
The item went under the hammer in New York on Saturday (26.10.19), and is said to be the most expensive sweater ever sold at auction.
According to Darren Julien, the president of Julien's Auction, the cigarette-burned cardigan is "the holy grail of any article of clothing that he ever wore".
What's more, the music icon's custom-made Fender Mustang guitar was sold at the auction for $340,000, having spent several years on display at the Rock and Roll Hall of Fame.
Meanwhile, Courtney Love claimed earlier this year that the musician's ghost once spoke to her while sitting in a chair.
The 55-year-old singer was married to the late Nirvana frontman from 1992 until his death, and Courtney said she saw him again from beyond the grave.
When asked whether she has ever seen a ghost, Courtney said: "When I moved to Hancock Park from Seattle with Frances and Edward [Norton, her ex-boyfriend], I saw Kurt in a chair for a moment and he said 'hi' to me and then he left."
Kurt died in 1994, when he was found dead at his home in Seattle at the age of 27.
The police ultimately concluded that the rocker died on April 5 from a self-inflicted shotgun wound.
