diff --git a/.changeset/neat-frogs-trade.md b/.changeset/neat-frogs-trade.md
new file mode 100644
index 00000000..ca5049bd
--- /dev/null
+++ b/.changeset/neat-frogs-trade.md
@@ -0,0 +1,5 @@
+---
+"vscode-apollo": minor
+---
+
+Add inline syntax highlighting support for Lua
diff --git a/package.json b/package.json
index 06dcdb29..1760c63b 100644
--- a/package.json
+++ b/package.json
@@ -175,6 +175,16 @@
           "meta.embedded.block.graphql": "graphql"
         }
       },
+      {
+        "injectTo": [
+          "source.lua"
+        ],
+        "scopeName": "inline.graphql.lua",
+        "path": "./syntaxes/graphql.lua.json",
+        "embeddedLanguages": {
+          "meta.embedded.block.graphql": "graphql"
+        }
+      },
       {
         "injectTo": [
           "source.ruby"
diff --git a/syntaxes/graphql.lua.json b/syntaxes/graphql.lua.json
new file mode 100644
index 00000000..53cb1b7d
--- /dev/null
+++ b/syntaxes/graphql.lua.json
@@ -0,0 +1,51 @@
+{
+  "fileTypes": ["lua", "luau"],
+  "injectionSelector": "L:source -string -comment",
+  "patterns": [
+    {
+      "contentName": "meta.embedded.block.graphql",
+      "begin": "(--\\[\\[)\\s*(gql)\\s*(\\]\\])\\s*(\\[\\[)",
+      "beginCaptures": {
+        "1": {
+          "name": "comment.block.lua"
+        },
+        "2": {
+          "name": "entity.name.function.lua"
+        },
+        "3": {
+          "name": "comment.block.lua"
+        },
+        "4": {
+          "name": "string.quoted.double.lua"
+        }
+      },
+      "end": "(\\]\\])",
+      "endCaptures": {
+        "1": {
+          "name": "string.quoted.double.lua"
+        }
+      },
+      "patterns": [{ "include": "source.graphql" }]
+    },
+    {
+      "contentName": "meta.embedded.block.graphql",
+      "begin": "(gql)\\(?\\s*(\\[\\[)",
+      "beginCaptures": {
+        "1": {
+          "name": "entity.name.function.lua"
+        },
+        "2": {
+          "name": "string.quoted.double.lua"
+        }
+      },
+      "end": "(\\]\\])",
+      "endCaptures": {
+        "1": {
+          "name": "string.quoted.double.lua"
+        }
+      },
+      "patterns": [{ "include": "source.graphql" }]
+    }
+  ],
+  "scopeName": "inline.graphql.lua"
+}