diff --git a/CHANGELOG.md b/CHANGELOG.md
index 7940c36fd811..e8a13a9ded19 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -18,6 +18,7 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 - _Upgrade (experimental)_: Minify arbitrary values when printing candidates ([#14720](https://github.com/tailwindlabs/tailwindcss/pull/14720))
 - _Upgrade (experimental)_: Ensure legacy theme values ending in `1` (like `theme(spacing.1)`) are correctly migrated to custom properties ([#14724](https://github.com/tailwindlabs/tailwindcss/pull/14724))
 - _Upgrade (experimental)_: Migrate arbitrary values to bare values for the `from-*`, `via-*`, and `to-*` utilities ([#14725](https://github.com/tailwindlabs/tailwindcss/pull/14725))
+- _Upgrade (experimental)_: Ensure `layer(utilities)` is removed from `@import` to keep `@utility` top-level ([#14738](https://github.com/tailwindlabs/tailwindcss/pull/14738))
 
 ### Changed
 
diff --git a/integrations/upgrade/index.test.ts b/integrations/upgrade/index.test.ts
index 948c0a9e9fd6..80005c088256 100644
--- a/integrations/upgrade/index.test.ts
+++ b/integrations/upgrade/index.test.ts
@@ -638,6 +638,60 @@ test(
   },
 )
 
+test(
+  'migrate utilities in an imported file and keep @utility top-level',
+  {
+    fs: {
+      'package.json': json`
+        {
+          "dependencies": {
+            "tailwindcss": "workspace:^",
+            "@tailwindcss/upgrade": "workspace:^"
+          }
+        }
+      `,
+      'tailwind.config.js': js`module.exports = {}`,
+      'src/index.css': css`
+        @import 'tailwindcss/utilities';
+        @import './utilities.css';
+        @import 'tailwindcss/components';
+      `,
+      'src/utilities.css': css`
+        @layer utilities {
+          .no-scrollbar::-webkit-scrollbar {
+            display: none;
+          }
+
+          .no-scrollbar {
+            -ms-overflow-style: none;
+            scrollbar-width: none;
+          }
+        }
+      `,
+    },
+  },
+  async ({ fs, exec }) => {
+    await exec('npx @tailwindcss/upgrade --force')
+
+    expect(await fs.dumpFiles('./src/**/*.css')).toMatchInlineSnapshot(`
+      "
+      --- ./src/index.css ---
+      @import 'tailwindcss/utilities' layer(utilities);
+      @import './utilities.css';
+
+      --- ./src/utilities.css ---
+      @utility no-scrollbar {
+        &::-webkit-scrollbar {
+          display: none;
+        }
+        -ms-overflow-style: none;
+        scrollbar-width: none;
+      }
+      "
+    `)
+  },
+)
+
 test(
   'migrate utilities in deep import trees',
   {
@@ -737,7 +791,7 @@ test(
       @import './a.1.css' layer(utilities);
       @import './a.1.utilities.1.css';
       @import './b.1.css';
-      @import './c.1.css' layer(utilities);
+      @import './c.1.css';
       @import './c.1.utilities.css';
       @import './d.1.css';
 
diff --git a/packages/@tailwindcss-upgrade/src/index.ts b/packages/@tailwindcss-upgrade/src/index.ts
index f82717413306..17a1041c8d5b 100644
--- a/packages/@tailwindcss-upgrade/src/index.ts
+++ b/packages/@tailwindcss-upgrade/src/index.ts
@@ -149,6 +149,47 @@ async function run() {
       error(`${e}`)
     }
 
+    // Cleanup `@import "…" layer(utilities)`
+    for (let sheet of stylesheets) {
+      // If the `@import` contains an injected `layer(…)` we need to remove it
+      if (!Array.from(sheet.importRules).some((node) => node.raws.tailwind_injected_layer)) {
+        continue
+      }
+
+      let hasAtUtility = false
+
+      // Only remove the `layer(…)` next to the import, if any of the children
+      // contains an `@utility`. Otherwise the `@utility` will not be top-level.
+      {
+        sheet.root.walkAtRules('utility', () => {
+          hasAtUtility = true
+          return false
+        })
+
+        if (!hasAtUtility) {
+          for (let child of sheet.descendants()) {
+            child.root.walkAtRules('utility', () => {
+              hasAtUtility = true
+              return false
+            })
+
+            if (hasAtUtility) {
+              break
+            }
+          }
+        }
+      }
+
+      // No `@utility` found, we can keep the `layer(…)` next to the import
+      if (!hasAtUtility) continue
+
+      for (let importNode of sheet.importRules) {
+        if (importNode.raws.tailwind_injected_layer) {
+          importNode.params = importNode.params.replace(/ layer\([^)]+\)/, '').trim()
+        }
+      }
+    }
+
     // Format nodes
     for (let sheet of stylesheets) {
       await postcss([formatNodes()]).process(sheet.root!, { from: sheet.file! })
diff --git a/packages/@tailwindcss-upgrade/src/migrate.ts b/packages/@tailwindcss-upgrade/src/migrate.ts
index b6524d1b0451..1b72afc6f780 100644
--- a/packages/@tailwindcss-upgrade/src/migrate.ts
+++ b/packages/@tailwindcss-upgrade/src/migrate.ts
@@ -159,8 +159,8 @@ export async function analyze(stylesheets: Stylesheet[]) {
   for (let sheet of stylesheets) {
     if (!sheet.file) continue
 
-    let { convertablePaths, nonConvertablePaths } = sheet.analyzeImportPaths()
-    let isAmbiguous = convertablePaths.length > 0 && nonConvertablePaths.length > 0
+    let { convertiblePaths, nonConvertiblePaths } = sheet.analyzeImportPaths()
+    let isAmbiguous = convertiblePaths.length > 0 && nonConvertiblePaths.length > 0
 
     if (!isAmbiguous) continue
 
@@ -168,11 +168,11 @@ export async function analyze(stylesheets: Stylesheet[]) {
 
     let filePath = sheet.file.replace(commonPath, '')
 
-    for (let path of convertablePaths) {
+    for (let path of convertiblePaths) {
       lines.push(`- ${filePath} <- ${pathToString(path)}`)
     }
 
-    for (let path of nonConvertablePaths) {
+    for (let path of nonConvertiblePaths) {
       lines.push(`- ${filePath} <- ${pathToString(path)}`)
     }
   }
@@ -197,7 +197,7 @@ export async function split(stylesheets: Stylesheet[]) {
     }
   }
 
-  // Keep track of sheets that contain `@utillity` rules
+  // Keep track of sheets that contain `@utility` rules
   let containsUtilities = new Set<Stylesheet>()
 
   for (let sheet of stylesheets) {
@@ -324,6 +324,7 @@ export async function split(stylesheets: Stylesheet[]) {
         params: `${quote}${newFile}${quote}`,
         raws: {
           after: '\n\n',
+          tailwind_injected_layer: node.raws.tailwind_injected_layer,
           tailwind_original_params: `${quote}${id}${quote}`,
           tailwind_destination_sheet_id: utilityDestination.id,
         },
diff --git a/packages/@tailwindcss-upgrade/src/stylesheet.ts b/packages/@tailwindcss-upgrade/src/stylesheet.ts
index c3a91fe4ba88..1b8fa841e7b5 100644
--- a/packages/@tailwindcss-upgrade/src/stylesheet.ts
+++ b/packages/@tailwindcss-upgrade/src/stylesheet.ts
@@ -197,26 +197,26 @@ export class Stylesheet {
    * adjusting imports which is a non-trivial task.
    */
   analyzeImportPaths() {
-    let convertablePaths: StylesheetConnection[][] = []
-    let nonConvertablePaths: StylesheetConnection[][] = []
+    let convertiblePaths: StylesheetConnection[][] = []
+    let nonConvertiblePaths: StylesheetConnection[][] = []
 
     for (let path of this.pathsToRoot()) {
-      let isConvertable = false
+      let isConvertible = false
 
       for (let { meta } of path) {
         for (let layer of meta.layers) {
-          isConvertable ||= layer === 'utilities' || layer === 'components'
+          isConvertible ||= layer === 'utilities' || layer === 'components'
         }
       }
 
-      if (isConvertable) {
-        convertablePaths.push(path)
+      if (isConvertible) {
+        convertiblePaths.push(path)
       } else {
-        nonConvertablePaths.push(path)
+        nonConvertiblePaths.push(path)
       }
     }
 
-    return { convertablePaths, nonConvertablePaths }
+    return { convertiblePaths, nonConvertiblePaths }
   }
 
   [util.inspect.custom]() {