diff --git a/packages/tailwindcss-language-syntax/tests/__snapshots__/syntax.test.ts.snap b/packages/tailwindcss-language-syntax/tests/__snapshots__/syntax.test.ts.snap
index 27140aab..e4386ccb 100644
--- a/packages/tailwindcss-language-syntax/tests/__snapshots__/syntax.test.ts.snap
+++ b/packages/tailwindcss-language-syntax/tests/__snapshots__/syntax.test.ts.snap
@@ -1103,6 +1103,53 @@ exports[`@utility 1`] = `
 
 }
 ^                                      1: source.css.tailwind meta.at-rule.utility.body.tailwind punctuation.section.utility.end.bracket.curly.tailwind
+
+
+^                                      1: source.css.tailwind
+
+@utility foo {
+^^^^^^^^^^^^^^                         6: source.css.tailwind
+^^^^^^^^                               2: keyword.control.at-rule.utility.tailwind
+^                                      1: punctuation.definition.keyword.css
+         ^^^                           1: variable.parameter.utility.tailwind
+             ^                         1: meta.at-rule.utility.body.tailwind punctuation.section.utility.begin.bracket.curly.tailwind
+
+  @apply flex;
+^^^^^^^^^^^^^^                         5: source.css.tailwind meta.at-rule.utility.body.tailwind
+  ^^^^^^^^^^^^                         4: meta.at-rule.header.css
+  ^^^^^^                               2: keyword.control.at-rule.css
+  ^                                    1: punctuation.definition.keyword.css
+             ^                         1: punctuation.terminator.rule.css
+
+}
+^                                      1: source.css.tailwind meta.at-rule.utility.body.tailwind punctuation.section.utility.end.bracket.curly.tailwind
+
+
+^                                      1: source.css.tailwind
+
+@utility foo {
+^^^^^^^^^^^^^^                         6: source.css.tailwind
+^^^^^^^^                               2: keyword.control.at-rule.utility.tailwind
+^                                      1: punctuation.definition.keyword.css
+         ^^^                           1: variable.parameter.utility.tailwind
+             ^                         1: meta.at-rule.utility.body.tailwind punctuation.section.utility.begin.bracket.curly.tailwind
+
+  & {
+^^^^^^                                 1: source.css.tailwind meta.at-rule.utility.body.tailwind
+
+    color: red;
+^^^^^^^^^^^^^^^                        6: source.css.tailwind meta.at-rule.utility.body.tailwind
+    ^^^^^                              1: meta.property-name.css support.type.property-name.css
+         ^                             1: punctuation.separator.key-value.css
+           ^^^                         1: meta.property-value.css support.constant.color.w3c-standard-color-name.css
+              ^                        1: punctuation.terminator.rule.css
+
+  }
+^^^                                    2: source.css.tailwind meta.at-rule.utility.body.tailwind
+  ^                                    1: punctuation.section.utility.end.bracket.curly.tailwind
+
+}
+^^                                     1: source.css.tailwind
 "
 `;
 
diff --git a/packages/tailwindcss-language-syntax/tests/syntax.test.ts b/packages/tailwindcss-language-syntax/tests/syntax.test.ts
index a1d49d76..e36c81a9 100644
--- a/packages/tailwindcss-language-syntax/tests/syntax.test.ts
+++ b/packages/tailwindcss-language-syntax/tests/syntax.test.ts
@@ -196,6 +196,16 @@ test('@utility', async ({ expect }) => {
       tab-size: --value(--tab-size-*);
       font-size: 12px;
     }
+
+    @utility foo {
+      @apply flex;
+    }
+
+    @utility foo {
+      & {
+        color: red;
+      }
+    }
   `)
 
   expect(result.toString()).toMatchSnapshot()
diff --git a/packages/vscode-tailwindcss/syntaxes/at-rules.tmLanguage.json b/packages/vscode-tailwindcss/syntaxes/at-rules.tmLanguage.json
index a029bd4c..fae53bbd 100644
--- a/packages/vscode-tailwindcss/syntaxes/at-rules.tmLanguage.json
+++ b/packages/vscode-tailwindcss/syntaxes/at-rules.tmLanguage.json
@@ -389,7 +389,7 @@
           "name": "meta.at-rule.utility.body.tailwind",
           "patterns": [
             {
-              "include": "source.css#rule-list-innards"
+              "include": "#property-list"
             }
           ]
         }