diff --git a/__tests__/applyAtRule.test.js b/__tests__/applyAtRule.test.js
index 4de99ffdb..29c0054d7 100644
--- a/__tests__/applyAtRule.test.js
+++ b/__tests__/applyAtRule.test.js
@@ -1,8 +1,12 @@
 import postcss from 'postcss'
 import plugin from '../src/lib/substituteClassApplyAtRules'
+import generateUtilities from '../src/util/generateUtilities'
+import defaultConfig from '../defaultConfig.stub.js'
 
-function run(input, opts = {}) {
-  return postcss([plugin(opts)]).process(input, { from: undefined })
+const defaultUtilities = generateUtilities(defaultConfig, [])
+
+function run(input, config = defaultConfig, utilities = defaultUtilities) {
+  return postcss([plugin(config, utilities)]).process(input, { from: undefined })
 }
 
 test("it copies a class's declarations into itself", () => {
@@ -168,3 +172,23 @@ test('it does not match classes that have multiple rules', () => {
     expect(e).toMatchObject({ name: 'CssSyntaxError' })
   })
 })
+
+test('you can apply utility classes that do not actually exist as long as they would exist if utilities were being generated', () => {
+  const input = `
+    .foo { @apply .mt-4; }
+  `
+
+  const expected = `
+    .foo { margin-top: 1rem; }
+  `
+
+  const config = {
+    ...defaultConfig,
+    experiments: { shadowLookup: true },
+  }
+
+  return run(input, config).then(result => {
+    expect(result.css).toEqual(expected)
+    expect(result.warnings().length).toBe(0)
+  })
+})
diff --git a/src/lib/substituteClassApplyAtRules.js b/src/lib/substituteClassApplyAtRules.js
index cea7167fb..01dfb3c28 100644
--- a/src/lib/substituteClassApplyAtRules.js
+++ b/src/lib/substituteClassApplyAtRules.js
@@ -15,40 +15,57 @@ function buildClassTable(css) {
   return classTable
 }
 
+function buildShadowTable(generatedUtilities) {
+  const utilities = postcss.root()
+
+  generatedUtilities.walkAtRules('variants', atRule => {
+    utilities.append(atRule.clone().nodes)
+  })
+
+  return buildClassTable(utilities)
+}
+
 function normalizeClassName(className) {
   return `.${escapeClassName(_.trimStart(className, '.'))}`
 }
 
-function findMixin(classTable, mixin, onError) {
-  const matches = _.get(classTable, mixin, [])
+function findClass(classToApply, classTable, shadowLookup, onError) {
+  const matches = _.get(classTable, classToApply, [])
 
   if (_.isEmpty(matches)) {
-    // prettier-ignore
-    onError(`\`@apply\` cannot be used with \`${mixin}\` because \`${mixin}\` either cannot be found, or it's actual definition includes a pseudo-selector like :hover, :active, etc. If you're sure that \`${mixin}\` exists, make sure that any \`@import\` statements are being properly processed *before* Tailwind CSS sees your CSS, as \`@apply\` can only be used for classes in the same CSS tree.`)
+    if (_.isEmpty(shadowLookup)) {
+      // prettier-ignore
+      throw onError(`\`@apply\` cannot be used with \`${classToApply}\` because \`${classToApply}\` either cannot be found, or it's actual definition includes a pseudo-selector like :hover, :active, etc. If you're sure that \`${classToApply}\` exists, make sure that any \`@import\` statements are being properly processed *before* Tailwind CSS sees your CSS, as \`@apply\` can only be used for classes in the same CSS tree.`)
+    }
+
+    return findClass(classToApply, shadowLookup, {}, onError)
   }
 
   if (matches.length > 1) {
     // prettier-ignore
-    onError(`\`@apply\` cannot be used with ${mixin} because ${mixin} is included in multiple rulesets.`)
+    throw onError(`\`@apply\` cannot be used with ${classToApply} because ${classToApply} is included in multiple rulesets.`)
   }
 
   const [match] = matches
 
   if (match.parent.type !== 'root') {
     // prettier-ignore
-    onError(`\`@apply\` cannot be used with ${mixin} because ${mixin} is nested inside of an at-rule (@${match.parent.name}).`)
+    throw onError(`\`@apply\` cannot be used with ${classToApply} because ${classToApply} is nested inside of an at-rule (@${match.parent.name}).`)
   }
 
   return match.clone().nodes
 }
 
-export default function() {
+export default function(config, generatedUtilities) {
   return function(css) {
     const classLookup = buildClassTable(css)
+    const shadowLookup = _.get(config, 'experiments.shadowLookup', false)
+      ? buildShadowTable(generatedUtilities)
+      : {}
 
     css.walkRules(rule => {
       rule.walkAtRules('apply', atRule => {
-        const mixins = postcss.list.space(atRule.params)
+        const classesAndProperties = postcss.list.space(atRule.params)
 
         /*
          * Don't wreck CSSNext-style @apply rules:
@@ -57,20 +74,20 @@ export default function() {
          * These are deprecated in CSSNext but still playing it safe for now.
          * We might consider renaming this at-rule.
          */
-        const [customProperties, classes] = _.partition(mixins, mixin => {
-          return _.startsWith(mixin, '--')
+        const [customProperties, classes] = _.partition(classesAndProperties, classOrProperty => {
+          return _.startsWith(classOrProperty, '--')
         })
 
         const decls = _(classes)
-          .reject(mixin => mixin === '!important')
-          .flatMap(mixin => {
-            return findMixin(classLookup, normalizeClassName(mixin), message => {
-              throw atRule.error(message)
+          .reject(cssClass => cssClass === '!important')
+          .flatMap(cssClass => {
+            return findClass(normalizeClassName(cssClass), classLookup, shadowLookup, message => {
+              return atRule.error(message)
             })
           })
           .value()
 
-        _.tap(_.last(mixins) === '!important', important => {
+        _.tap(_.last(classesAndProperties) === '!important', important => {
           decls.forEach(decl => (decl.important = important))
         })
 
diff --git a/src/lib/substituteTailwindAtRules.js b/src/lib/substituteTailwindAtRules.js
index 0d7365426..05b7c938c 100644
--- a/src/lib/substituteTailwindAtRules.js
+++ b/src/lib/substituteTailwindAtRules.js
@@ -1,10 +1,7 @@
 import fs from 'fs'
 import postcss from 'postcss'
-import utilityModules from '../utilityModules'
-import prefixTree from '../util/prefixTree'
-import generateModules from '../util/generateModules'
 
-export default function(config, { components: pluginComponents, utilities: pluginUtilities }) {
+export default function(config, { components: pluginComponents }, generatedUtilities) {
   return function(css) {
     css.walkAtRules('tailwind', atRule => {
       if (atRule.params === 'preflight') {
@@ -30,27 +27,8 @@ export default function(config, { components: pluginComponents, utilities: plugi
       }
 
       if (atRule.params === 'utilities') {
-        const utilities = generateModules(utilityModules, config.modules, config)
-
-        if (config.options.important) {
-          utilities.walkDecls(decl => (decl.important = true))
-        }
-
-        const tailwindUtilityTree = postcss.root({
-          nodes: utilities.nodes,
-        })
-
-        const pluginUtilityTree = postcss.root({
-          nodes: pluginUtilities,
-        })
-
-        prefixTree(tailwindUtilityTree, config.options.prefix)
-
-        tailwindUtilityTree.walk(node => (node.source = atRule.source))
-        pluginUtilityTree.walk(node => (node.source = atRule.source))
-
-        atRule.before(tailwindUtilityTree)
-        atRule.before(pluginUtilityTree)
+        generatedUtilities.walk(node => (node.source = atRule.source))
+        atRule.before(generatedUtilities)
         atRule.remove()
       }
     })
diff --git a/src/processTailwindFeatures.js b/src/processTailwindFeatures.js
index 49f097a7b..f67e60603 100644
--- a/src/processTailwindFeatures.js
+++ b/src/processTailwindFeatures.js
@@ -6,18 +6,21 @@ import substituteVariantsAtRules from './lib/substituteVariantsAtRules'
 import substituteResponsiveAtRules from './lib/substituteResponsiveAtRules'
 import substituteScreenAtRules from './lib/substituteScreenAtRules'
 import substituteClassApplyAtRules from './lib/substituteClassApplyAtRules'
+
+import generateUtilities from './util/generateUtilities'
 import processPlugins from './util/processPlugins'
 
 export default function(lazyConfig) {
   const config = lazyConfig()
-  const plugins = processPlugins(config)
+  const processedPlugins = processPlugins(config)
+  const utilities = generateUtilities(config, processedPlugins.utilities)
 
   return postcss([
-    substituteTailwindAtRules(config, plugins),
+    substituteTailwindAtRules(config, processedPlugins, utilities.clone()),
     evaluateTailwindFunctions(config),
-    substituteVariantsAtRules(config, plugins),
+    substituteVariantsAtRules(config, processedPlugins),
     substituteResponsiveAtRules(config),
     substituteScreenAtRules(config),
-    substituteClassApplyAtRules(config),
+    substituteClassApplyAtRules(config, utilities.clone()),
   ])
 }
diff --git a/src/util/generateUtilities.js b/src/util/generateUtilities.js
new file mode 100644
index 000000000..b2843ddc6
--- /dev/null
+++ b/src/util/generateUtilities.js
@@ -0,0 +1,24 @@
+import _ from 'lodash'
+import postcss from 'postcss'
+import utilityModules from '../utilityModules'
+import prefixTree from '../util/prefixTree'
+import generateModules from '../util/generateModules'
+
+export default function(config, pluginUtilities) {
+  const utilities = generateModules(utilityModules, config.modules, config)
+
+  if (config.options.important) {
+    utilities.walkDecls(decl => (decl.important = true))
+  }
+
+  const tailwindUtilityTree = postcss.root({
+    nodes: utilities.nodes,
+  })
+
+  prefixTree(tailwindUtilityTree, config.options.prefix)
+
+  return _.tap(postcss.root(), root => {
+    root.append(tailwindUtilityTree.nodes)
+    root.append(pluginUtilities)
+  })
+}