diff --git a/packages/optimizers/css/package.json b/packages/optimizers/css/package.json
index 4d437dee09a..3b1ab4395f9 100644
--- a/packages/optimizers/css/package.json
+++ b/packages/optimizers/css/package.json
@@ -20,7 +20,7 @@
     "parcel": "^2.0.1"
   },
   "dependencies": {
-    "@parcel/css": "1.0.0-alpha.6",
+    "@parcel/css": "1.0.0-alpha.7",
     "@parcel/plugin": "^2.0.1",
     "@parcel/source-map": "^2.0.0",
     "@parcel/utils": "^2.0.1",
diff --git a/packages/optimizers/css/src/CSSOptimizer.js b/packages/optimizers/css/src/CSSOptimizer.js
index f49b332f897..0116fb3f677 100644
--- a/packages/optimizers/css/src/CSSOptimizer.js
+++ b/packages/optimizers/css/src/CSSOptimizer.js
@@ -3,7 +3,7 @@
 import SourceMap from '@parcel/source-map';
 import {Optimizer} from '@parcel/plugin';
 // $FlowFixMe
-import {transform} from '@parcel/css';
+import {transform, transformStyleAttribute} from '@parcel/css';
 import {blobToBuffer} from '@parcel/utils';
 import browserslist from 'browserslist';
 
@@ -21,6 +21,21 @@ export default (new Optimizer({
 
     let targets = getTargets(bundle.env.engines.browsers);
     let code = await blobToBuffer(prevContents);
+
+    // Inline style attributes in HTML need to be parsed differently from full CSS files.
+    if (bundle.bundleBehavior === 'inline') {
+      let entry = bundle.getMainEntry();
+      if (entry?.meta.type === 'attr') {
+        let contents = transformStyleAttribute({
+          code,
+          minify: true,
+          targets,
+        });
+
+        return {contents};
+      }
+    }
+
     let result = transform({
       filename: bundle.name,
       code,
diff --git a/yarn.lock b/yarn.lock
index 96e8cc101ce..93d89d24a1c 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -2133,10 +2133,10 @@
   dependencies:
     "@octokit/openapi-types" "^6.2.0"
 
-"@parcel/css@1.0.0-alpha.4":
-  version "1.0.0-alpha.4"
-  resolved "https://registry.yarnpkg.com/@parcel/css/-/css-1.0.0-alpha.4.tgz#967520401053f8eb0d5f23ed58b4afbcebc6c9de"
-  integrity sha512-/wd7WWesAekEexrL7slIkb1gNXX/XYF8bMZUEcEKjDdkfne5SyINLTGbV3WzvsEjzRwgBL5kBET5nX59GJ3JVg==
+"@parcel/css@1.0.0-alpha.7":
+  version "1.0.0-alpha.7"
+  resolved "https://registry.yarnpkg.com/@parcel/css/-/css-1.0.0-alpha.7.tgz#5d8a540fbbce0d63fb959c383313b249e70fb18c"
+  integrity sha512-uVf1rljfTigmpYI+09U6f4/3Ds3qCvf+NVW4N6PQ2xZuYUkcEjcHqxhSzSgTvOSSwJc+CRcKcho3cQGZ5Z8nbA==
   dependencies:
     detect-libc "^1.0.3"