diff --git a/README.md b/README.md
index 98287d00e..b48709f40 100644
--- a/README.md
+++ b/README.md
@@ -10,14 +10,6 @@ npm install astro
 
 TODO: astro boilerplate
 
-### 💧 Partial Hydration
-
-By default, Astro outputs zero client-side JS. If you'd like to include an interactive component in the client output, you may use any of the following techniques.
-
-- `MyComponent:load` will render `MyComponent` on page load
-- `MyComponent:idle` will use `requestIdleCallback` to render `MyComponent` as soon as main thread is free
-- `MyComponent:visible` will use an `IntersectionObserver` to render `MyComponent` when the element enters the viewport
-
 ## 🧞 Development
 
 Add a `dev` npm script to your `/package.json` file:
@@ -36,6 +28,53 @@ Then run:
 npm run dev
 ```
 
+### 💧 Partial Hydration
+
+By default, Astro outputs zero client-side JS. If you'd like to include an interactive component in the client output, you may use any of the following techniques.
+
+- `MyComponent:load` will render `MyComponent` on page load
+- `MyComponent:idle` will use `requestIdleCallback` to render `MyComponent` as soon as main thread is free
+- `MyComponent:visible` will use an `IntersectionObserver` to render `MyComponent` when the element enters the viewport
+
+### 💅 Styling
+
+If you‘ve used [Svelte][svelte]’s styles before, Astro works almost the same way. In any `.astro` file, start writing styles in a `<style>` tag like so:
+
+```astro
+<style>
+.scoped {
+  font-weight: bold;
+}
+</style>
+
+<div class="scoped">I’m a scoped style</div>
+```
+
+#### Sass
+
+Astro also supports [Sass][sass] out-of-the-box; no configuration needed:
+
+```astro
+<style lang="scss">
+@use "../tokens" as *;
+
+.title {
+  color: $color.gray;
+}
+</style>
+
+<h1 class="title">Title</h1>
+```
+
+Supports:
+
+- `lang="scss"`: load as the `.scss` extension
+- `lang="sass"`: load as the `.sass` extension (no brackets; indent-style)
+
+### Autoprefixer
+
+We also automatically add browser prefixes using [Autoprefixer][autoprefixer]. By default, Astro loads the default values, but you may also specify your own by placing a [Browserslist][browserslist] file in your project root.
+
 ## 🚀 Build & Deployment
 
 Add a `build` npm script to your `/package.json` file:
@@ -56,3 +95,8 @@ npm run build
 ```
 
 Now upload the contents of `/_site_` to your favorite static site host.
+
+[autoprefixer]: https://github.com/postcss/autoprefixer
+[browserslist]: https://github.com/browserslist/browserslist
+[sass]: https://sass-lang.com/
+[svelte]: https://svelte.dev
diff --git a/examples/snowpack/astro/components/Nav.astro b/examples/snowpack/astro/components/Nav.astro
index 3582bd0a0..a5f14d656 100644
--- a/examples/snowpack/astro/components/Nav.astro
+++ b/examples/snowpack/astro/components/Nav.astro
@@ -27,7 +27,7 @@ export let version: string = '3.1.2';
     color: $white;
     background-color: $dark-blue;
 
-    body.is-nav-open & {
+    :global(body.is-nav-open) & {
       height: $nav-height * 2;
     }
 
diff --git a/examples/snowpack/package-lock.json b/examples/snowpack/package-lock.json
index d9b20cf23..a52da1c88 100644
--- a/examples/snowpack/package-lock.json
+++ b/examples/snowpack/package-lock.json
@@ -996,7 +996,7 @@
         "deepmerge": "^4.2.2",
         "domhandler": "^4.0.0",
         "es-module-lexer": "^0.4.1",
-        "esbuild": "^0.9.6",
+        "esbuild": "^0.10.1",
         "find-up": "^5.0.0",
         "github-slugger": "^1.3.0",
         "gray-matter": "^4.0.2",
@@ -1008,7 +1008,6 @@
         "micromark-extension-gfm": "^0.3.3",
         "node-fetch": "^2.6.1",
         "postcss": "^8.2.8",
-        "postcss-modules": "^4.0.0",
         "react": "^17.0.1",
         "react-dom": "^17.0.1",
         "sass": "^1.32.8",
@@ -2371,9 +2370,9 @@
           "dev": true
         },
         "esbuild": {
-          "version": "0.9.6",
-          "resolved": "https://registry.npmjs.org/esbuild/-/esbuild-0.9.6.tgz",
-          "integrity": "sha512-F6vASxU0wT/Davt9aj2qtDwDNSkQxh9VbyO56M7PDWD+D/Vgq/rmUDGDQo7te76W5auauVojjnQr/wTu3vpaUA==",
+          "version": "0.10.2",
+          "resolved": "https://registry.npmjs.org/esbuild/-/esbuild-0.10.2.tgz",
+          "integrity": "sha512-/5vsZD7wTJJHC3yNXLUjXNvUDwqwNoIMvFvLd9tcDQ9el5l13pspYm3yufavjIeYvNtAbo+6N/6uoWx9dGA6ug==",
           "dev": true
         },
         "escalade": {
@@ -4253,6 +4252,14 @@
             "picomatch": "^2.2.2",
             "resolve": "^1.20.0",
             "rollup": "^2.34.0"
+          },
+          "dependencies": {
+            "esbuild": {
+              "version": "0.9.7",
+              "resolved": "https://registry.npmjs.org/esbuild/-/esbuild-0.9.7.tgz",
+              "integrity": "sha512-VtUf6aQ89VTmMLKrWHYG50uByMF4JQlVysb8dmg6cOgW8JnFCipmz7p+HNBl+RR3LLCuBxFGVauAe2wfnF9bLg==",
+              "dev": true
+            }
           }
         },
         "source-map": {
diff --git a/package.json b/package.json
index e5d2b2785..1c44c9ab9 100644
--- a/package.json
+++ b/package.json
@@ -56,7 +56,6 @@
     "micromark-extension-gfm": "^0.3.3",
     "node-fetch": "^2.6.1",
     "postcss": "^8.2.8",
-    "postcss-modules": "^4.0.0",
     "react": "^17.0.1",
     "react-dom": "^17.0.1",
     "rollup": "^2.43.1",
diff --git a/src/compiler/optimize/postcss-scoped-styles/index.ts b/src/compiler/optimize/postcss-scoped-styles/index.ts
new file mode 100644
index 000000000..7949f63b5
--- /dev/null
+++ b/src/compiler/optimize/postcss-scoped-styles/index.ts
@@ -0,0 +1,79 @@
+import { Plugin } from 'postcss';
+
+interface AstroScopedOptions {
+  className: string;
+}
+
+interface Selector {
+  start: number;
+  end: number;
+  value: string;
+}
+
+const CSS_SEPARATORS = new Set([' ', ',', '+', '>', '~']);
+
+/**
+ * Scope Selectors
+ * Given a selector string (`.btn>span,.nav>span`), add an additional CSS class to every selector (`.btn.myClass>span.myClass,.nav.myClass>span.myClass`)
+ * @param {string} selector The minified selector string to parse. Cannot contain arbitrary whitespace (other than child selector syntax).
+ * @param {string} className The CSS class to apply.
+ */
+export function scopeSelectors(selector: string, className: string) {
+  const c = className.replace(/^\.?/, '.'); // make sure class always has leading '.'
+  const selectors: Selector[] = [];
+  let ss = selector; // final output
+
+  // Pass 1: parse selector string; extract top-level selectors
+  let start = 0;
+  let lastValue = '';
+  for (let n = 0; n < ss.length; n++) {
+    const isEnd = n === selector.length - 1;
+    if (isEnd || CSS_SEPARATORS.has(selector[n])) {
+      lastValue = selector.substring(start, isEnd ? undefined : n);
+      if (!lastValue) continue;
+      selectors.push({ start, end: isEnd ? n + 1 : n, value: lastValue });
+      start = n + 1;
+    }
+  }
+
+  // Pass 2: starting from end, transform selectors w/ scoped class
+  for (let i = selectors.length - 1; i >= 0; i--) {
+    const { start, end, value } = selectors[i];
+    const head = ss.substring(0, start);
+    const tail = ss.substring(end);
+
+    // replace '*' with className
+    if (value === '*') {
+      ss = head + c + tail;
+      continue;
+    }
+
+    // leave :global() alone!
+    if (value.startsWith(':global(')) {
+      ss = head + ss.substring(start, end).replace(':global(', '').replace(')', '') + tail;
+      continue;
+    }
+
+    // scope everything else
+    let newSelector = ss.substring(start, end);
+    const pseudoIndex = newSelector.indexOf(':');
+    if (pseudoIndex > 0) {
+      // if there‘s a pseudoclass (:focus)
+      ss = head + newSelector.substring(start, pseudoIndex) + c + newSelector.substr(pseudoIndex) + tail;
+    } else {
+      ss = head + newSelector + c + tail;
+    }
+  }
+
+  return ss;
+}
+
+/** PostCSS Scope plugin */
+export default function astroScopedStyles(options: AstroScopedOptions): Plugin {
+  return {
+    postcssPlugin: '@astro/postcss-scoped-styles',
+    Rule(rule) {
+      rule.selector = scopeSelectors(rule.selector, options.className);
+    },
+  };
+}
diff --git a/src/compiler/optimize/styles.ts b/src/compiler/optimize/styles.ts
index 563e9b355..6f0cd9361 100644
--- a/src/compiler/optimize/styles.ts
+++ b/src/compiler/optimize/styles.ts
@@ -2,11 +2,11 @@ import crypto from 'crypto';
 import path from 'path';
 import autoprefixer from 'autoprefixer';
 import postcss from 'postcss';
-import postcssModules from 'postcss-modules';
 import findUp from 'find-up';
 import sass from 'sass';
 import { Optimizer } from '../../@types/optimizer';
 import type { TemplateNode } from '../../parser/interfaces';
+import astroScopedStyles from './postcss-scoped-styles/index.js';
 
 type StyleType = 'css' | 'scss' | 'sass' | 'postcss';
 
@@ -28,6 +28,8 @@ const getStyleType: Map<string, StyleType> = new Map([
 const SASS_OPTIONS: Partial<sass.Options> = {
   outputStyle: 'compressed',
 };
+/** HTML tags that should never get scoped classes */
+const NEVER_SCOPED_TAGS = new Set<string>(['html', 'head', 'body', 'script', 'style', 'link', 'meta']);
 
 /** Should be deterministic, given a unique filename */
 function hashFromFilename(filename: string): string {
@@ -42,14 +44,14 @@ function hashFromFilename(filename: string): string {
 
 export interface StyleTransformResult {
   css: string;
-  cssModules: Map<string, string>;
   type: StyleType;
 }
 
 // cache node_modules resolutions for each run. saves looking up the same directory over and over again. blown away on exit.
 const nodeModulesMiniCache = new Map<string, string>();
 
-async function transformStyle(code: string, { type, filename, fileID }: { type?: string; filename: string; fileID: string }): Promise<StyleTransformResult> {
+/** Convert styles to scoped CSS */
+async function transformStyle(code: string, { type, filename, scopedClass }: { type?: string; filename: string; scopedClass: string }): Promise<StyleTransformResult> {
   let styleType: StyleType = 'css'; // important: assume CSS as default
   if (type) {
     styleType = getStyleType.get(type) || styleType;
@@ -81,51 +83,31 @@ async function transformStyle(code: string, { type, filename, fileID }: { type?:
       css = sass.renderSync({ ...SASS_OPTIONS, data: code, includePaths }).css.toString('utf8');
       break;
     }
-    case 'postcss': {
-      css = code; // TODO
-      break;
-    }
     default: {
-      throw new Error(`Unsupported: <style type="${styleType}">`);
+      throw new Error(`Unsupported: <style lang="${styleType}">`);
     }
   }
 
-  const cssModules = new Map<string, string>();
-
-  css = await postcss([
-    postcssModules({
-      generateScopedName(name: string) {
-        return `${name}__${hashFromFilename(fileID)}`;
-      },
-      getJSON(_: string, json: any) {
-        Object.entries(json).forEach(([k, v]: any) => {
-          if (k !== v) cssModules.set(k, v);
-        });
-      },
-    }),
-    autoprefixer(),
-  ])
+  css = await postcss([astroScopedStyles({ className: scopedClass }), autoprefixer()])
     .process(css, { from: filename, to: undefined })
     .then((result) => result.css);
 
-  return {
-    css,
-    cssModules,
-    type: styleType,
-  };
+  return { css, type: styleType };
 }
 
 export default function ({ filename, fileID }: { filename: string; fileID: string }): Optimizer {
-  const elementNodes: TemplateNode[] = []; //  elements that need CSS Modules class names
   const styleNodes: TemplateNode[] = []; // <style> tags to be updated
   const styleTransformPromises: Promise<StyleTransformResult>[] = []; // async style transform results to be finished in finalize();
   let rootNode: TemplateNode; // root node which needs <style> tags
 
+  const scopedClass = `astro-${hashFromFilename(fileID)}`; // this *should* generate same hash from fileID every time
+
   return {
     visitors: {
       html: {
         Element: {
           enter(node) {
+            // 1. if <style> tag, transform it and continue to next node
             if (node.name === 'style') {
               // Same as ast.css (below)
               const code = Array.isArray(node.children) ? node.children.map(({ data }: any) => data).join('\n') : '';
@@ -136,22 +118,42 @@ export default function ({ filename, fileID }: { filename: string; fileID: strin
                 transformStyle(code, {
                   type: (langAttr && langAttr.value[0] && langAttr.value[0].data) || undefined,
                   filename,
-                  fileID,
+                  scopedClass,
                 })
               );
               return;
             }
 
-            // Find the root node to inject the <style> tag in later
+            // 2. find the root node to inject the <style> tag in later
+            // TODO: remove this when we are injecting <link> tags into <head>
             if (node.name === 'head') {
               rootNode = node; // If this is <head>, this is what we want. Always take this if found. However, this may not always exist (it won’t for Component subtrees).
             } else if (!rootNode) {
               rootNode = node; // If no <head> (yet), then take the first element we come to and assume it‘s the “root” (but if we find a <head> later, then override this per the above)
             }
 
-            for (let attr of node.attributes) {
-              if (attr.name !== 'class') continue;
-              elementNodes.push(node);
+            // 3. add scoped HTML classes
+            if (NEVER_SCOPED_TAGS.has(node.name)) return; // only continue if this is NOT a <script> tag, etc.
+            // Note: currently we _do_ scope web components/custom elements. This seems correct?
+
+            if (!node.attributes) node.attributes = [];
+            const classIndex = node.attributes.findIndex(({ name }: any) => name === 'class');
+            if (classIndex === -1) {
+              // 3a. element has no class="" attribute; add one and append scopedClass
+              node.attributes.push({ start: -1, end: -1, type: 'Attribute', name: 'class', value: [{ type: 'Text', raw: scopedClass, data: scopedClass }] });
+            } else {
+              // 3b. element has class=""; append scopedClass
+              const attr = node.attributes[classIndex];
+              for (let k = 0; k < attr.value.length; k++) {
+                if (attr.value[k].type === 'Text') {
+                  // string literal
+                  attr.value[k].raw += ' ' + scopedClass;
+                  attr.value[k].data += ' ' + scopedClass;
+                } else if (attr.value[k].type === 'MustacheTag' && attr.value[k]) {
+                  // MustacheTag
+                  attr.value[k].content = `(${attr.value[k].content}) + ' ${scopedClass}'`;
+                }
+              }
             }
           },
         },
@@ -170,7 +172,7 @@ export default function ({ filename, fileID }: { filename: string; fileID: strin
               transformStyle(code, {
                 type: (langAttr && langAttr.value[0] && langAttr.value[0].data) || undefined,
                 filename,
-                fileID,
+                scopedClass,
               })
             );
 
@@ -182,7 +184,6 @@ export default function ({ filename, fileID }: { filename: string; fileID: strin
       },
     },
     async finalize() {
-      const allCssModules: Record<string, string> = {}; // note: this may theoretically have conflicts, but when written, it shouldn’t because we’re processing everything per-component (if we change this to run across the whole document at once, revisit this)
       const styleTransforms = await Promise.all(styleTransformPromises);
 
       if (!rootNode) {
@@ -192,11 +193,6 @@ export default function ({ filename, fileID }: { filename: string; fileID: strin
       // 1. transform <style> tags
       styleTransforms.forEach((result, n) => {
         if (styleNodes[n].attributes) {
-          // 1a. Add to global CSS Module class list for step 2
-          for (const [k, v] of result.cssModules) {
-            allCssModules[k] = v;
-          }
-
           // 1b. Inject final CSS
           const isHeadStyle = !styleNodes[n].content;
           if (isHeadStyle) {
@@ -221,34 +217,8 @@ export default function ({ filename, fileID }: { filename: string; fileID: strin
       });
 
       // 2. inject finished <style> tags into root node
+      // TODO: pull out into <link> tags for deduping
       rootNode.children = [...styleNodes, ...(rootNode.children || [])];
-
-      // 3. update HTML classes
-      for (let i = 0; i < elementNodes.length; i++) {
-        if (!elementNodes[i].attributes) continue;
-        const node = elementNodes[i];
-        for (let j = 0; j < node.attributes.length; j++) {
-          if (node.attributes[j].name !== 'class') continue;
-          const attr = node.attributes[j];
-          for (let k = 0; k < attr.value.length; k++) {
-            if (attr.value[k].type === 'Text') {
-              // This class is standard HTML (`class="foo"`). Replace only the classes that match
-              const elementClassNames = (attr.value[k].raw as string)
-                .split(' ')
-                .map((c) => {
-                  let className = c.trim();
-                  return allCssModules[className] || className; // if className matches exactly, replace; otherwise keep original
-                })
-                .join(' ');
-              attr.value[k].raw = elementClassNames;
-              attr.value[k].data = elementClassNames;
-            } else if (attr.value[k].type === 'MustacheTag' && attr.value[k]) {
-              // This class is an expression, so it’s more difficult (`className={'some' + 'expression'}`). We pass all CSS Module names to the expression, and let it find a match, if any
-              attr.value[k].content = `(${attr.value[k].content}).split(' ').map((className) => (${JSON.stringify(allCssModules)})[className] || className).join(' ')`;
-            }
-          }
-        }
-      }
     },
   };
 }
diff --git a/test/astro-scoped-styles.test.js b/test/astro-scoped-styles.test.js
new file mode 100644
index 000000000..d6ae7a02e
--- /dev/null
+++ b/test/astro-scoped-styles.test.js
@@ -0,0 +1,28 @@
+import { suite } from 'uvu';
+import * as assert from 'uvu/assert';
+import { scopeSelectors } from '../lib/compiler/optimize/postcss-scoped-styles/index.js';
+
+const ScopedStyles = suite('Astro PostCSS Scoped Styles Plugin');
+
+const className = '.astro-abcd1234';
+
+// Note: assume all selectors have no unnecessary spaces (i.e. must be minified)
+const tests = {
+  '.class': `.class${className}`,
+  h1: `h1${className}`,
+  '.nav h1': `.nav${className} h1${className}`,
+  '.class+.class': `.class${className}+.class${className}`,
+  '.class~:global(a)': `.class${className}~a`,
+  '.class *': `.class${className} ${className}`,
+  '.class>*': `.class${className}>${className}`,
+  '.class :global(*)': `.class${className} *`,
+  '.class:not(.is-active)': `.class${className}:not(.is-active)`, // Note: the :not() selector can NOT contain multiple classes, so this is correct; if this causes issues for some people then it‘s worth a discussion
+};
+
+ScopedStyles('Scopes correctly', () => {
+  for (const [given, expected] of Object.entries(tests)) {
+    assert.equal(scopeSelectors(given, className), expected);
+  }
+});
+
+ScopedStyles.run();
diff --git a/test/astro-styles-ssr.test.js b/test/astro-styles-ssr.test.js
index 9145e65a9..9ee67f69b 100644
--- a/test/astro-styles-ssr.test.js
+++ b/test/astro-styles-ssr.test.js
@@ -47,4 +47,24 @@ StylesSSR('Has correct CSS classes', async () => {
   }
 });
 
+StylesSSR('CSS Module support in .astro', async () => {
+  const result = await runtime.load('/');
+  const $ = doc(result.contents);
+
+  let scopedClass;
+
+  // test 1: <style> tag in <head> is transformed
+  const css = $('style')
+    .html()
+    .replace(/\.astro-[A-Za-z0-9-]+/, (match) => {
+      scopedClass = match;
+      return match;
+    }); // remove class hash (should be deterministic / the same every time, but even still don‘t cause this test to flake)
+  assert.equal(css, `.wrapper${scopedClass}{margin-left:auto;margin-right:auto;max-width:1200px}`);
+
+  // test 2: element received .astro-XXXXXX class (this selector will succeed if transformed correctly)
+  const wrapper = $(`.wrapper${scopedClass}`);
+  assert.equal(wrapper.length, 1);
+});
+
 StylesSSR.run();
diff --git a/test/fixtures/astro-styles-ssr/astro/pages/index.astro b/test/fixtures/astro-styles-ssr/astro/pages/index.astro
index 30591da72..7333fac21 100644
--- a/test/fixtures/astro-styles-ssr/astro/pages/index.astro
+++ b/test/fixtures/astro-styles-ssr/astro/pages/index.astro
@@ -7,9 +7,16 @@ import SvelteScoped from '../components/SvelteScoped.svelte';
 <html>
   <head>
     <meta charset="UTF-8" />
+    <style lang="scss">
+      .wrapper {
+        margin-left: auto;
+        margin-right: auto;
+        max-width: 1200px;
+      }
+    </style>
   </head>
   <body>
-    <div>
+    <div class="wrapper">
       <ReactCSS />
       <VueCSS />
       <SvelteScoped />