diff --git a/src/parser/cssErrors.ts b/src/parser/cssErrors.ts
index d92259f1..f31f0d4c 100644
--- a/src/parser/cssErrors.ts
+++ b/src/parser/cssErrors.ts
@@ -48,4 +48,5 @@ export let ParseError = {
 	UnknownKeyword: new CSSIssueType('css-unknownkeyword', localize('unknown.keyword', "unknown keyword")),
 	SelectorExpected: new CSSIssueType('css-selectorexpected', localize('expected.selector', "selector expected")),
 	StringLiteralExpected: new CSSIssueType('css-stringliteralexpected', localize('expected.stringliteral', "string literal expected")),
+	CustomPropertyNameExpected: new CSSIssueType('css-custompropertynameexpected', localize('expected.custompropertyname', "custom property name expected")),
 };
diff --git a/src/parser/cssNodes.ts b/src/parser/cssNodes.ts
index 4cb0178f..250bc558 100644
--- a/src/parser/cssNodes.ts
+++ b/src/parser/cssNodes.ts
@@ -71,7 +71,8 @@ export enum NodeType {
 	FunctionArgument,
 	KeyframeSelector,
 	ViewPort,
-	Document
+	Document,
+	AtApplyRule
 }
 
 export enum ReferenceType {
@@ -496,6 +497,19 @@ export class SimpleSelector extends Node {
 	}
 }
 
+export class AtApplyRule extends Node {
+	public endOfAtApply: number;
+	public semicolonPosition: number;
+
+	constructor(offset: number, length: number) {
+		super(offset, length);
+	}
+
+	public get type(): NodeType {
+		return NodeType.AtApplyRule;
+	}
+}
+
 export abstract class AbstractDeclaration extends Node {
 
 	// positions for code assist
@@ -1245,7 +1259,7 @@ export class MixinReference extends Node {
 			this.namespaces = new Nodelist(this);
 		}
 		return this.namespaces;
-	}	
+	}
 
 	public setIdentifier(node: Identifier): boolean {
 		return this.setNode('identifier', node, 0);
diff --git a/src/parser/cssParser.ts b/src/parser/cssParser.ts
index e4187713..fe1992c0 100644
--- a/src/parser/cssParser.ts
+++ b/src/parser/cssParser.ts
@@ -260,7 +260,39 @@ export class Parser {
 	}
 
 	public _parseRuleSetDeclaration(): nodes.Node {
-		return this._parseDeclaration();
+		return this._tryToParseAtApply() || this._parseDeclaration();
+	}
+
+	/**
+	 * Parses declarations like:
+	 *   @apply --my-theme;
+	 *
+	 * Follows https://tabatkins.github.io/specs/css-apply-rule/#using
+	 */
+	public _tryToParseAtApply(): nodes.Node {
+		if (!this.peek(TokenType.AtKeyword, '@apply')) {
+			return null;
+		}
+		const node = this.create(nodes.AtApplyRule) as nodes.AtApplyRule;
+		node.endOfAtApply = this.token.offset + this.token.len;
+		this.consumeToken();
+
+		if (!this.peek(TokenType.Ident)) {
+			return this.finish(node, ParseError.IdentifierExpected);
+		}
+		/**
+		 * A css custom property name is any identifier that starts with two
+		 * dashes:
+		 * https://www.w3.org/TR/css-variables/#typedef-custom-property-name
+		 */
+		if (!this.peekRegExp(TokenType.Ident, /^--/)) {
+			return this.finish(node, ParseError.CustomPropertyNameExpected);
+		}
+		this.accept(TokenType.Ident);
+		if (this.peek(TokenType.SemiColon)) {
+			node.semicolonPosition = this.token.offset;
+		}
+		return this.finish(node);
 	}
 
 	public _needsSemicolonAfter(node: nodes.Node): boolean {
@@ -284,6 +316,7 @@ export class Parser {
 			case nodes.NodeType.MediaQuery:
 			case nodes.NodeType.Debug:
 			case nodes.NodeType.Import:
+			case nodes.NodeType.AtApplyRule:
 				return true;
 			case nodes.NodeType.MixinReference:
 				return !(<nodes.MixinReference>node).getContent();
@@ -515,8 +548,8 @@ export class Parser {
 	}
 
 	public _parseMediaDeclaration(): nodes.Node {
-		return this._tryParseRuleset(false) 
-			|| this._tryToParseDeclaration() 
+		return this._tryParseRuleset(false)
+			|| this._tryToParseDeclaration()
 			|| this._parseStylesheetStatement();
 	}
 
diff --git a/src/test/css/parser.test.ts b/src/test/css/parser.test.ts
index 6de5fda4..4657d237 100644
--- a/src/test/css/parser.test.ts
+++ b/src/test/css/parser.test.ts
@@ -235,6 +235,9 @@ suite('CSS - Parser', () => {
 		assertNode('boo { prop: value; }', parser, parser._parseRuleset.bind(parser));
 		assertNode('boo { prop: value; prop: value }', parser, parser._parseRuleset.bind(parser));
 		assertNode('boo { prop: value; prop: value; }', parser, parser._parseRuleset.bind(parser));
+		assertNode('boo { @apply --custom-prop; }', parser, parser._parseRuleset.bind(parser));
+		assertNode('boo { @apply --custom-prop }', parser, parser._parseRuleset.bind(parser));
+		assertNode('boo { @apply --custom-prop; background-color: red }', parser, parser._parseRuleset.bind(parser));
 	});
 
 	test('Ruleset /Panic/', function () {
@@ -244,6 +247,9 @@ suite('CSS - Parser', () => {
 		assertError('boo { prop }', parser, parser._parseRuleset.bind(parser), ParseError.ColonExpected);
 		assertError('boo { prop: ; far: 12em; }', parser, parser._parseRuleset.bind(parser), ParseError.PropertyValueExpected);
 		//	assertNode('boo { prop: ; 1ar: 12em; }', parser, parser._parseRuleset.bind(parser));
+		assertError('boo { @apply }', parser, parser._parseRuleset.bind(parser), ParseError.IdentifierExpected);
+		assertError('boo { @apply not-custom-prop}', parser, parser._parseRuleset.bind(parser), ParseError.CustomPropertyNameExpected);
+		assertError('boo { @apply --custom-prop background: red}', parser, parser._parseRuleset.bind(parser), ParseError.SemiColonExpected);
 	});
 
 	test('selector', function () {
diff --git a/src/test/css/scanner.test.ts b/src/test/css/scanner.test.ts
index bb93748c..88a4b66e 100644
--- a/src/test/css/scanner.test.ts
+++ b/src/test/css/scanner.test.ts
@@ -82,6 +82,7 @@ suite('CSS - Scanner', () => {
 		assertSingleToken(scanner, '@charset', 8, 0, '@charset', TokenType.Charset);
 		assertSingleToken(scanner, '@-mport', 7, 0, '@-mport', TokenType.AtKeyword);
 		assertSingleToken(scanner, '@\u00f0mport', 7, 0, '@\u00f0mport', TokenType.AtKeyword);
+		assertSingleToken(scanner, '@apply', 6, 0, '@apply', TokenType.AtKeyword);
 		assertSingleToken(scanner, '@', 1, 0, '@', TokenType.Delim);
 	});