diff --git a/.prettierignore b/.prettierignore
index 7b6398b3e..9075aae84 100644
--- a/.prettierignore
+++ b/.prettierignore
@@ -1,6 +1,10 @@
-# To be removed with ".astro" parsing is ready
-# Also, be sure to remove "pluginSearchDirs" from config
-**/*.astro
+# Ignoring these files for now due to https://github.com/withastro/compiler/issues/318
+examples/basics/src/layouts
+examples/blog/src/layouts
+examples/with-nanostores/src/layouts
+
+# Ignoring this file for now due to https://github.com/withastro/compiler/issues/485
+packages/markdown/component/Markdown.astro
 
 # Deep Directories
 **/dist
diff --git a/.prettierrc.json b/.prettierrc.json
index b0a1a2a07..4048bb823 100644
--- a/.prettierrc.json
+++ b/.prettierrc.json
@@ -5,13 +5,19 @@
   "tabWidth": 2,
   "trailingComma": "es5",
   "useTabs": true,
+  "plugins": ["./node_modules/prettier-plugin-astro"],
   "overrides": [
     {
       "files": [".*", "*.json", "*.md", "*.toml", "*.yml"],
       "options": {
         "useTabs": false
       }
+    },
+    {
+      "files": ["**/*.astro"],
+      "options": {
+        "parser": "astro"
+      }
     }
-  ],
-  "pluginSearchDirs": ["./assets"]
+  ]
 }
diff --git a/package.json b/package.json
index 4c62e25f4..0c97dfba2 100644
--- a/package.json
+++ b/package.json
@@ -14,7 +14,7 @@
     "dev": "turbo run dev --no-deps --no-cache --parallel --filter=astro --filter=create-astro --filter=\"@astrojs/*\"",
     "format": "pnpm run format:code",
     "format:ci": "pnpm run format:imports && pnpm run format:code",
-    "format:code": "prettier -w . --cache",
+    "format:code": "prettier -w . --cache --plugin-search-dir=.",
     "format:imports": "organize-imports-cli ./packages/*/tsconfig.json ./packages/*/*/tsconfig.json",
     "test": "turbo run test --output-logs=new-only --concurrency=1 --filter=astro --filter=create-astro --filter=\"@astrojs/*\"",
     "test:match": "cd packages/astro && pnpm run test:match",
@@ -27,7 +27,6 @@
     "version": "changeset version && pnpm install --no-frozen-lockfile && pnpm run format"
   },
   "workspaces": [
-    "compiled/*",
     "packages/markdown/*",
     "packages/integrations/*",
     "packages/*",
@@ -35,7 +34,6 @@
     "examples/component/demo",
     "examples/component/packages/*",
     "scripts",
-    "smoke/*",
     "packages/astro/test/fixtures/component-library-shared",
     "packages/astro/test/fixtures/custom-elements/my-component-lib",
     "packages/astro/test/fixtures/static build/pkg"
@@ -90,6 +88,7 @@
     "execa": "^6.1.0",
     "organize-imports-cli": "^0.10.0",
     "prettier": "^2.7.0",
+    "prettier-plugin-astro": "^0.3.0",
     "pretty-bytes": "^6.0.0",
     "tiny-glob": "^0.2.9",
     "turbo": "1.2.5",
diff --git a/pnpm-lock.yaml b/pnpm-lock.yaml
index aa59dbee6..9f4faf835 100644
--- a/pnpm-lock.yaml
+++ b/pnpm-lock.yaml
@@ -30,6 +30,7 @@ importers:
       execa: ^6.1.0
       organize-imports-cli: ^0.10.0
       prettier: ^2.7.0
+      prettier-plugin-astro: ^0.3.0
       pretty-bytes: ^6.0.0
       tiny-glob: ^0.2.9
       turbo: 1.2.5
@@ -52,6 +53,7 @@ importers:
       execa: 6.1.0
       organize-imports-cli: 0.10.0
       prettier: 2.7.1
+      prettier-plugin-astro: 0.3.0
       pretty-bytes: 6.0.0
       tiny-glob: 0.2.9
       turbo: 1.2.5
@@ -3027,6 +3029,10 @@ packages:
       leven: 3.1.0
     dev: true
 
+  /@astrojs/compiler/0.19.0:
+    resolution: {integrity: sha512-8nvyxZTfCXLyRmYfTttpJT6EPhfBRg0/q4J/Jj3/pNPLzp+vs05ZdktsY6QxAREaOMAnNEtSqcrB4S5DsXOfRg==}
+    dev: true
+
   /@astrojs/compiler/0.23.1:
     resolution: {integrity: sha512-KsoDrASGwTKZoWXbjy8SlIeoDv7y1OfBJtHVLuPuzhConA8e0SZpGzFqIuVRfG4bhisSTptZLDQZ7oxwgPv2jA==}
     dev: false
@@ -5458,6 +5464,18 @@ packages:
       '@octokit/openapi-types': 12.11.0
     dev: true
 
+  /@pkgr/utils/2.3.0:
+    resolution: {integrity: sha512-7dIJ9CRVzBnqyEl7diUHPUFJf/oty2SeoVzcMocc5PeOUDK9KGzvgIBjGRRzzlRDaOjh3ADwH0WeibQvi3ls2Q==}
+    engines: {node: ^12.20.0 || ^14.18.0 || >=16.0.0}
+    dependencies:
+      cross-spawn: 7.0.3
+      is-glob: 4.0.3
+      open: 8.4.0
+      picocolors: 1.0.0
+      tiny-glob: 0.2.9
+      tslib: 2.4.0
+    dev: true
+
   /@playwright/test/1.24.2:
     resolution: {integrity: sha512-Q4X224pRHw4Dtkk5PoNJplZCokLNvVbXD9wDQEMrHcEuvWpJWEQDeJ9gEwkZ3iCWSFSWBshIX177B231XW4wOQ==}
     engines: {node: '>=14'}
@@ -10184,6 +10202,11 @@ packages:
     dependencies:
       clone: 1.0.4
 
+  /define-lazy-prop/2.0.0:
+    resolution: {integrity: sha512-Ds09qNh8yw3khSjiJjiUInaGX9xlqZDY7JVryGxdxV7NPeuqQfplOpQ66yJFZut3jLa5zOwkXw1g9EI2uKh4Og==}
+    engines: {node: '>=8'}
+    dev: true
+
   /define-properties/1.1.4:
     resolution: {integrity: sha512-uckOqKcfaVvtBdsVkdPv3XjveQJsNQqmhXgRi8uhvWWuPYZCNlzT8qAyblUgNoXdHdjMTzAqeGjAoli8f+bzPA==}
     engines: {node: '>= 0.4'}
@@ -12091,7 +12114,6 @@ packages:
     resolution: {integrity: sha512-F+i2BKsFrH66iaUFc0woD8sLy8getkwTwtOBjvs56Cx4CgJDeKQeqfz8wAYiSb8JOprWhHH5p77PbmYCvvUuXQ==}
     engines: {node: '>=8'}
     hasBin: true
-    dev: false
 
   /is-docker/3.0.0:
     resolution: {integrity: sha512-eljcgEDlEns/7AXFosB5K/2nCM4P7FQPkGc/DWLy5rmFEWvZayGrik1d9/QIY5nJ4f9YsVvBkA6kJpHn9rISdQ==}
@@ -12278,7 +12300,6 @@ packages:
     engines: {node: '>=8'}
     dependencies:
       is-docker: 2.2.1
-    dev: false
 
   /isarray/0.0.1:
     resolution: {integrity: sha512-D2S+3GLxWH+uhrNEcoh/fnmYeP8E8/zHl644d/jdA0g2uyXvy3sb0qxotE+ne0LtccHknQzWwZEzhak7oJ0COQ==}
@@ -13715,6 +13736,15 @@ packages:
     dependencies:
       mimic-fn: 4.0.0
 
+  /open/8.4.0:
+    resolution: {integrity: sha512-XgFPPM+B28FtCCgSb9I+s9szOC1vZRSwgWsRUA5ylIxRTgKozqjOCrVOqGsYABPYK5qnfqClxZTFBa8PKt2v6Q==}
+    engines: {node: '>=12'}
+    dependencies:
+      define-lazy-prop: 2.0.0
+      is-docker: 2.2.1
+      is-wsl: 2.2.0
+    dev: true
+
   /optionator/0.8.3:
     resolution: {integrity: sha512-+IW9pACdk3XWmmTXG8m3upGUJst5XRGzxMRjXzAuJ1XnIFNvfhjjIuYkDvysnPQ7qzqVzLt78BCruntqRhWQbA==}
     engines: {node: '>= 0.8.0'}
@@ -14485,6 +14515,16 @@ packages:
       fast-diff: 1.2.0
     dev: true
 
+  /prettier-plugin-astro/0.3.0:
+    resolution: {integrity: sha512-ApEy5U3FPdylBa72L8k7W/h/zgegAyuHppDu9geVwFHzaaEQpaRCrT3Wt0nc6tNcbDaOgotBfcaUzMr0Cw6a8w==}
+    engines: {node: ^14.15.0 || >=16.0.0, npm: '>=6.14.0'}
+    dependencies:
+      '@astrojs/compiler': 0.19.0
+      prettier: 2.7.1
+      sass-formatter: 0.7.5
+      synckit: 0.7.3
+    dev: true
+
   /prettier/1.19.1:
     resolution: {integrity: sha512-s7PoyDv/II1ObgQunCbB9PdLmUcBZcnWOcxDh7O0N/UwDEsHyqkW+Qh28jW+mVuCdx7gLB0BotYI1Y6uI9iyew==}
     engines: {node: '>=4'}
@@ -15125,6 +15165,10 @@ packages:
       tslib: 2.4.0
     dev: true
 
+  /s.color/0.0.15:
+    resolution: {integrity: sha512-AUNrbEUHeKY8XsYr/DYpl+qk5+aM+DChopnWOPEzn8YKzOhv4l2zH6LzZms3tOZP3wwdOyc0RmTciyi46HLIuA==}
+    dev: true
+
   /sade/1.8.1:
     resolution: {integrity: sha512-xal3CZX1Xlo/k4ApwCFrHVACi9fBqJ7V+mwhBsuf/1IOKbBy098Fex+Wa/5QMubw09pSZ/u8EY8PWgevJsXp1A==}
     engines: {node: '>=6'}
@@ -15149,6 +15193,12 @@ packages:
       rimraf: 2.7.1
     dev: false
 
+  /sass-formatter/0.7.5:
+    resolution: {integrity: sha512-NKFP8ddjhUYi6A/iD1cEtzkEs91U61kzqe3lY9SVNuvX7LGc88xnEN0mmsWL7Ol//YTi2GL/ol7b9XZ2+hgXuA==}
+    dependencies:
+      suf-log: 2.5.3
+    dev: true
+
   /sass/1.54.3:
     resolution: {integrity: sha512-fLodey5Qd41Pxp/Tk7Al97sViYwF/TazRc5t6E65O7JOk4XF8pzwIW7CvCxYVOfJFFI/1x5+elDyBIixrp+zrw==}
     engines: {node: '>=12.0.0'}
@@ -15426,6 +15476,7 @@ packages:
   /source-map/0.6.1:
     resolution: {integrity: sha512-UjgapumWlbMhkBgzT7Ykc5YXUT46F0iKu8SGXq0bcwP5dz/h0Plj6enJqjz1Zbq2l5WaqYnrVbwWOWMyF3F47g==}
     engines: {node: '>=0.10.0'}
+    requiresBuild: true
 
   /source-map/0.7.4:
     resolution: {integrity: sha512-l3BikUxvPOcn5E74dZiq5BGsTb5yEwhaTSzccU6t4sDOH8NWJCstKO5QT2CvtFoK6F0saL7p9xHAqHOlCPJygA==}
@@ -15663,6 +15714,12 @@ packages:
       inline-style-parser: 0.1.1
     dev: false
 
+  /suf-log/2.5.3:
+    resolution: {integrity: sha512-KvC8OPjzdNOe+xQ4XWJV2whQA0aM1kGVczMQ8+dStAO6KfEB140JEVQ9dE76ONZ0/Ylf67ni4tILPJB41U0eow==}
+    dependencies:
+      s.color: 0.0.15
+    dev: true
+
   /supports-color/5.5.0:
     resolution: {integrity: sha512-QjVjwdXIt408MIiAqCX4oUKsgU2EqAGzs2Ppkm4aQYbjm+ZEWEcW4SfFNTr4uMNZma0ey4f5lgLrkB0aX0QMow==}
     engines: {node: '>=4'}
@@ -15770,6 +15827,14 @@ packages:
       svelte: 3.49.0
     dev: false
 
+  /synckit/0.7.3:
+    resolution: {integrity: sha512-jNroMv7Juy+mJ/CHW5H6TzsLWpa1qck6sCHbkv8YTur+irSq2PjbvmGnm2gy14BUQ6jF33vyR4DPssHqmqsDQw==}
+    engines: {node: ^12.20.0 || ^14.18.0 || >=16.0.0}
+    dependencies:
+      '@pkgr/utils': 2.3.0
+      tslib: 2.4.0
+    dev: true
+
   /tailwindcss/3.1.7:
     resolution: {integrity: sha512-r7mgumZ3k0InfVPpGWcX8X/Ut4xBfv+1O/+C73ar/m01LxGVzWvPxF/w6xIUPEztrCoz7axfx0SMdh8FH8ZvRQ==}
     engines: {node: '>=12.13.0'}