diff --git a/packages/@headlessui-react/pages/dialog/dialog.tsx b/packages/@headlessui-react/pages/dialog/dialog.tsx
index 1717428f63..8e3f0552fc 100644
--- a/packages/@headlessui-react/pages/dialog/dialog.tsx
+++ b/packages/@headlessui-react/pages/dialog/dialog.tsx
@@ -74,16 +74,16 @@ export default function Home() {
           <div className="fixed z-10 inset-0 overflow-y-auto">
             <div className="flex items-end justify-center min-h-screen pt-4 px-4 pb-20 text-center sm:block sm:p-0">
               <Transition.Child
+                as={Fragment}
                 enter="ease-out duration-300"
                 enterFrom="opacity-0"
-                enterTo="opacity-100"
+                enterTo="opacity-75"
                 leave="ease-in duration-200"
-                leaveFrom="opacity-100"
+                leaveFrom="opacity-75"
                 leaveTo="opacity-0"
+                entered="opacity-75"
               >
-                <Dialog.Overlay className="fixed inset-0 transition-opacity">
-                  <div className="absolute inset-0 bg-gray-500 opacity-75"></div>
-                </Dialog.Overlay>
+                <Dialog.Overlay className="fixed inset-0 bg-gray-500 transition-opacity" />
               </Transition.Child>
 
               <Transition.Child
diff --git a/packages/@headlessui-react/src/components/transitions/transition.tsx b/packages/@headlessui-react/src/components/transitions/transition.tsx
index f1c30c16e7..266b9160c4 100644
--- a/packages/@headlessui-react/src/components/transitions/transition.tsx
+++ b/packages/@headlessui-react/src/components/transitions/transition.tsx
@@ -49,6 +49,7 @@ export interface TransitionClasses {
   enter?: string
   enterFrom?: string
   enterTo?: string
+  entered?: string
   leave?: string
   leaveFrom?: string
   leaveTo?: string
@@ -200,6 +201,7 @@ function TransitionChild<TTag extends ElementType = typeof DEFAULT_TRANSITION_CH
     enter,
     enterFrom,
     enterTo,
+    entered,
     leave,
     leaveFrom,
     leaveTo,
@@ -255,6 +257,8 @@ function TransitionChild<TTag extends ElementType = typeof DEFAULT_TRANSITION_CH
   let enterFromClasses = useSplitClasses(enterFrom)
   let enterToClasses = useSplitClasses(enterTo)
 
+  let enteredClasses = useSplitClasses(entered)
+
   let leaveClasses = useSplitClasses(leave)
   let leaveFromClasses = useSplitClasses(leaveFrom)
   let leaveToClasses = useSplitClasses(leaveTo)
@@ -283,11 +287,11 @@ function TransitionChild<TTag extends ElementType = typeof DEFAULT_TRANSITION_CH
     if (!show) events.current.beforeLeave()
 
     return show
-      ? transition(node, enterClasses, enterFromClasses, enterToClasses, reason => {
+      ? transition(node, enterClasses, enterFromClasses, enterToClasses, enteredClasses, reason => {
           isTransitioning.current = false
           if (reason === Reason.Finished) events.current.afterEnter()
         })
-      : transition(node, leaveClasses, leaveFromClasses, leaveToClasses, reason => {
+      : transition(node, leaveClasses, leaveFromClasses, leaveToClasses, enteredClasses, reason => {
           isTransitioning.current = false
 
           if (reason !== Reason.Finished) return
diff --git a/packages/@headlessui-react/src/components/transitions/utils/transition.test.ts b/packages/@headlessui-react/src/components/transitions/utils/transition.test.ts
index f5b2e0c01b..9918716179 100644
--- a/packages/@headlessui-react/src/components/transitions/utils/transition.test.ts
+++ b/packages/@headlessui-react/src/components/transitions/utils/transition.test.ts
@@ -27,7 +27,7 @@ it('should be possible to transition', async () => {
   )
 
   await new Promise(resolve => {
-    transition(element, ['enter'], ['enterFrom'], ['enterTo'], resolve)
+    transition(element, ['enter'], ['enterFrom'], ['enterTo'], ['entered'], resolve)
   })
 
   await new Promise(resolve => d.nextFrame(resolve))
@@ -42,7 +42,7 @@ it('should be possible to transition', async () => {
   // necessary to put the classes on the element and immediately remove them.
 
   // Cleanup phase
-  expect(snapshots[2].content).toEqual('<div class=""></div>')
+  expect(snapshots[2].content).toEqual('<div class="entered"></div>')
 
   d.dispose()
 })
@@ -71,7 +71,7 @@ it('should wait the correct amount of time to finish a transition', async () =>
   )
 
   let reason = await new Promise(resolve => {
-    transition(element, ['enter'], ['enterFrom'], ['enterTo'], resolve)
+    transition(element, ['enter'], ['enterFrom'], ['enterTo'], ['entered'], resolve)
   })
 
   await new Promise(resolve => d.nextFrame(resolve))
@@ -98,7 +98,7 @@ it('should wait the correct amount of time to finish a transition', async () =>
 
   // Cleanup phase
   expect(snapshots[3].content).toEqual(
-    `<div style="transition-duration: ${duration}ms;" class=""></div>`
+    `<div style="transition-duration: ${duration}ms;" class="entered"></div>`
   )
 })
 
@@ -128,7 +128,7 @@ it('should keep the delay time into account', async () => {
   )
 
   let reason = await new Promise(resolve => {
-    transition(element, ['enter'], ['enterFrom'], ['enterTo'], resolve)
+    transition(element, ['enter'], ['enterFrom'], ['enterTo'], ['entered'], resolve)
   })
 
   await new Promise(resolve => d.nextFrame(resolve))
@@ -178,7 +178,7 @@ it('should be possible to cancel a transition at any time', async () => {
   expect.assertions(2)
 
   // Setup the transition
-  let cancel = transition(element, ['enter'], ['enterFrom'], ['enterTo'], reason => {
+  let cancel = transition(element, ['enter'], ['enterFrom'], ['enterTo'], ['entered'], reason => {
     expect(reason).toBe(Reason.Cancelled)
   })
 
diff --git a/packages/@headlessui-react/src/components/transitions/utils/transition.ts b/packages/@headlessui-react/src/components/transitions/utils/transition.ts
index 67f1ffb661..6201eae0cb 100644
--- a/packages/@headlessui-react/src/components/transitions/utils/transition.ts
+++ b/packages/@headlessui-react/src/components/transitions/utils/transition.ts
@@ -60,11 +60,13 @@ export function transition(
   base: string[],
   from: string[],
   to: string[],
+  entered: string[],
   done?: (reason: Reason) => void
 ) {
   let d = disposables()
   let _done = done !== undefined ? once(done) : () => {}
 
+  removeClasses(node, ...entered)
   addClasses(node, ...base, ...from)
 
   d.nextFrame(() => {
@@ -74,6 +76,7 @@ export function transition(
     d.add(
       waitForTransition(node, reason => {
         removeClasses(node, ...to, ...base)
+        addClasses(node, ...entered)
         return _done(reason)
       })
     )
@@ -83,7 +86,7 @@ export function transition(
   // the node itself will be nullified and will be a no-op. In case of a full transition the classes
   // are already removed which is also a no-op. However if you go from enter -> leave mid-transition
   // then we have some leftovers that should be cleaned.
-  d.add(() => removeClasses(node, ...base, ...from, ...to))
+  d.add(() => removeClasses(node, ...base, ...from, ...to, ...entered))
 
   // When we get disposed early, than we should also call the done method but switch the reason.
   d.add(() => _done(Reason.Cancelled))
diff --git a/packages/@headlessui-vue/examples/src/components/dialog/dialog.vue b/packages/@headlessui-vue/examples/src/components/dialog/dialog.vue
index 4b744c5533..161e97eb25 100644
--- a/packages/@headlessui-vue/examples/src/components/dialog/dialog.vue
+++ b/packages/@headlessui-vue/examples/src/components/dialog/dialog.vue
@@ -17,14 +17,13 @@
             as="template"
             enter="ease-out duration-300"
             enterFrom="opacity-0"
-            enterTo="opacity-100"
+            enterTo="opacity-75"
             leave="ease-in duration-200"
-            leaveFrom="opacity-100"
+            leaveFrom="opacity-75"
             leaveTo="opacity-0"
+            entered="opacity-75"
           >
-            <DialogOverlay class="fixed inset-0 transition-opacity">
-              <div class="absolute inset-0 bg-gray-500 opacity-75"></div>
-            </DialogOverlay>
+            <DialogOverlay className="fixed inset-0 bg-gray-500 transition-opacity" />
           </TransitionChild>
 
           <TransitionChild
diff --git a/packages/@headlessui-vue/src/components/transitions/transition.ts b/packages/@headlessui-vue/src/components/transitions/transition.ts
index f80c9fbdba..02ba8b8cb5 100644
--- a/packages/@headlessui-vue/src/components/transitions/transition.ts
+++ b/packages/@headlessui-vue/src/components/transitions/transition.ts
@@ -140,6 +140,7 @@ export let TransitionChild = defineComponent({
     enter: { type: [String], default: '' },
     enterFrom: { type: [String], default: '' },
     enterTo: { type: [String], default: '' },
+    entered: { type: [String], default: '' },
     leave: { type: [String], default: '' },
     leaveFrom: { type: [String], default: '' },
     leaveTo: { type: [String], default: '' },
@@ -168,6 +169,7 @@ export let TransitionChild = defineComponent({
       enter,
       enterFrom,
       enterTo,
+      entered,
       leave,
       leaveFrom,
       leaveTo,
@@ -243,6 +245,8 @@ export let TransitionChild = defineComponent({
     let enterFromClasses = splitClasses(props.enterFrom)
     let enterToClasses = splitClasses(props.enterTo)
 
+    let enteredClasses = splitClasses(props.entered)
+
     let leaveClasses = splitClasses(props.leave)
     let leaveFromClasses = splitClasses(props.leaveFrom)
     let leaveToClasses = splitClasses(props.leaveTo)
@@ -277,23 +281,37 @@ export let TransitionChild = defineComponent({
 
       onInvalidate(
         show.value
-          ? transition(node, enterClasses, enterFromClasses, enterToClasses, reason => {
-              isTransitioning.value = false
-              if (reason === Reason.Finished) emit('afterEnter')
-            })
-          : transition(node, leaveClasses, leaveFromClasses, leaveToClasses, reason => {
-              isTransitioning.value = false
-
-              if (reason !== Reason.Finished) return
-
-              // When we don't have children anymore we can safely unregister from the parent and hide
-              // ourselves.
-              if (!hasChildren(nesting)) {
-                state.value = TreeStates.Hidden
-                unregister(id)
-                emit('afterLeave')
+          ? transition(
+              node,
+              enterClasses,
+              enterFromClasses,
+              enterToClasses,
+              enteredClasses,
+              reason => {
+                isTransitioning.value = false
+                if (reason === Reason.Finished) emit('afterEnter')
+              }
+            )
+          : transition(
+              node,
+              leaveClasses,
+              leaveFromClasses,
+              leaveToClasses,
+              enteredClasses,
+              reason => {
+                isTransitioning.value = false
+
+                if (reason !== Reason.Finished) return
+
+                // When we don't have children anymore we can safely unregister from the parent and hide
+                // ourselves.
+                if (!hasChildren(nesting)) {
+                  state.value = TreeStates.Hidden
+                  unregister(id)
+                  emit('afterLeave')
+                }
               }
-            })
+            )
       )
     }
 
@@ -334,6 +352,7 @@ export let TransitionRoot = defineComponent({
     enter: { type: [String], default: '' },
     enterFrom: { type: [String], default: '' },
     enterTo: { type: [String], default: '' },
+    entered: { type: [String], default: '' },
     leave: { type: [String], default: '' },
     leaveFrom: { type: [String], default: '' },
     leaveTo: { type: [String], default: '' },
diff --git a/packages/@headlessui-vue/src/components/transitions/utils/transition.test.ts b/packages/@headlessui-vue/src/components/transitions/utils/transition.test.ts
index f5b2e0c01b..9918716179 100644
--- a/packages/@headlessui-vue/src/components/transitions/utils/transition.test.ts
+++ b/packages/@headlessui-vue/src/components/transitions/utils/transition.test.ts
@@ -27,7 +27,7 @@ it('should be possible to transition', async () => {
   )
 
   await new Promise(resolve => {
-    transition(element, ['enter'], ['enterFrom'], ['enterTo'], resolve)
+    transition(element, ['enter'], ['enterFrom'], ['enterTo'], ['entered'], resolve)
   })
 
   await new Promise(resolve => d.nextFrame(resolve))
@@ -42,7 +42,7 @@ it('should be possible to transition', async () => {
   // necessary to put the classes on the element and immediately remove them.
 
   // Cleanup phase
-  expect(snapshots[2].content).toEqual('<div class=""></div>')
+  expect(snapshots[2].content).toEqual('<div class="entered"></div>')
 
   d.dispose()
 })
@@ -71,7 +71,7 @@ it('should wait the correct amount of time to finish a transition', async () =>
   )
 
   let reason = await new Promise(resolve => {
-    transition(element, ['enter'], ['enterFrom'], ['enterTo'], resolve)
+    transition(element, ['enter'], ['enterFrom'], ['enterTo'], ['entered'], resolve)
   })
 
   await new Promise(resolve => d.nextFrame(resolve))
@@ -98,7 +98,7 @@ it('should wait the correct amount of time to finish a transition', async () =>
 
   // Cleanup phase
   expect(snapshots[3].content).toEqual(
-    `<div style="transition-duration: ${duration}ms;" class=""></div>`
+    `<div style="transition-duration: ${duration}ms;" class="entered"></div>`
   )
 })
 
@@ -128,7 +128,7 @@ it('should keep the delay time into account', async () => {
   )
 
   let reason = await new Promise(resolve => {
-    transition(element, ['enter'], ['enterFrom'], ['enterTo'], resolve)
+    transition(element, ['enter'], ['enterFrom'], ['enterTo'], ['entered'], resolve)
   })
 
   await new Promise(resolve => d.nextFrame(resolve))
@@ -178,7 +178,7 @@ it('should be possible to cancel a transition at any time', async () => {
   expect.assertions(2)
 
   // Setup the transition
-  let cancel = transition(element, ['enter'], ['enterFrom'], ['enterTo'], reason => {
+  let cancel = transition(element, ['enter'], ['enterFrom'], ['enterTo'], ['entered'], reason => {
     expect(reason).toBe(Reason.Cancelled)
   })
 
diff --git a/packages/@headlessui-vue/src/components/transitions/utils/transition.ts b/packages/@headlessui-vue/src/components/transitions/utils/transition.ts
index 24baf21678..8382141da9 100644
--- a/packages/@headlessui-vue/src/components/transitions/utils/transition.ts
+++ b/packages/@headlessui-vue/src/components/transitions/utils/transition.ts
@@ -58,11 +58,13 @@ export function transition(
   base: string[],
   from: string[],
   to: string[],
+  entered: string[],
   done?: (reason: Reason) => void
 ) {
   let d = disposables()
   let _done = done !== undefined ? once(done) : () => {}
 
+  removeClasses(node, ...entered)
   addClasses(node, ...base, ...from)
 
   d.nextFrame(() => {
@@ -72,6 +74,7 @@ export function transition(
     d.add(
       waitForTransition(node, reason => {
         removeClasses(node, ...to, ...base)
+        addClasses(node, ...entered)
         return _done(reason)
       })
     )
@@ -81,7 +84,7 @@ export function transition(
   // the node itself will be nullified and will be a no-op. In case of a full transition the classes
   // are already removed which is also a no-op. However if you go from enter -> leave mid-transition
   // then we have some leftovers that should be cleaned.
-  d.add(() => removeClasses(node, ...base, ...from, ...to))
+  d.add(() => removeClasses(node, ...base, ...from, ...to, ...entered))
 
   // When we get disposed early, than we should also call the done method but switch the reason.
   d.add(() => _done(Reason.Cancelled))