diff --git a/HISTORY.rst b/HISTORY.rst
index 2c8bb9d..b725f1e 100644
--- a/HISTORY.rst
+++ b/HISTORY.rst
@@ -7,6 +7,7 @@ v0.20.0 (unreleased)
 ....................
 * fix tests for python 3.8, #396 by @samuelcolvin
 * Adds fields to the ``dir`` method for autocompletion in interactive sessions, #398 by @dgasmith
+* support ``ForwardRef`` (and therefore ``from __future__ import annotations``) with dataclasses, #397 by @samuelcolvin
 
 v0.20.0a1 (2019-02-13)
 ......................
diff --git a/docs/examples/postponed_broken.py b/docs/examples/postponed_broken.py
new file mode 100644
index 0000000..67ea4a8
--- /dev/null
+++ b/docs/examples/postponed_broken.py
@@ -0,0 +1,8 @@
+from __future__ import annotations
+from pydantic import BaseModel
+
+def this_is_broken():
+    from typing import List  # <-- List is defined inside the function so is not in the module's global scope
+    class Model(BaseModel):
+        a: List[int]
+    print(Model(a=(1, 2)))
diff --git a/docs/examples/postponed_works.py b/docs/examples/postponed_works.py
new file mode 100644
index 0000000..a4a8243
--- /dev/null
+++ b/docs/examples/postponed_works.py
@@ -0,0 +1,8 @@
+from __future__ import annotations
+from typing import List  # <-- List is defined in the module's global scope
+from pydantic import BaseModel
+
+def this_works():
+    class Model(BaseModel):
+        a: List[int]
+    print(Model(a=(1, 2)))
diff --git a/docs/index.rst b/docs/index.rst
index be876f9..f6cf551 100644
--- a/docs/index.rst
+++ b/docs/index.rst
@@ -709,6 +709,22 @@ to properly set types before the model can be used.
 
 (This script is complete, it should run "as is")
 
+.. warning::
+
+   To resolve strings (type names) into annotations (types) *pydantic* needs a dict to lookup,
+   for this is uses ``module.__dict__`` just as ``get_type_hints`` does. That means *pydantic* does not play well
+   with types not defined in the global scope of a module.
+
+   For example, this works fine:
+
+   .. literalinclude:: examples/postponed_works.py
+
+   While this will break:
+
+   .. literalinclude:: examples/postponed_broken.py
+
+   Resolving this is beyond the call for *pydantic*: either remove the future import or declare the types globally.
+
 .. _benchmarks_tag:
 
 Benchmarks
diff --git a/pydantic/dataclasses.py b/pydantic/dataclasses.py
index 4ecac89..9220fca 100644
--- a/pydantic/dataclasses.py
+++ b/pydantic/dataclasses.py
@@ -74,7 +74,7 @@ def _process_class(
     fields: Dict[str, Any] = {name: (field.type, field.default) for name, field in cls.__dataclass_fields__.items()}
     cls.__post_init_original__ = post_init_original
 
-    cls.__pydantic_model__ = create_model(cls.__name__, __config__=config, __base__=None, **fields)
+    cls.__pydantic_model__ = create_model(cls.__name__, __config__=config, __module__=_cls.__module__, **fields)
 
     cls.__initialised__ = False
     cls.__validate__ = classmethod(_validate_dataclass)
diff --git a/pydantic/main.py b/pydantic/main.py
index 0c08af6..d13b088 100644
--- a/pydantic/main.py
+++ b/pydantic/main.py
@@ -504,7 +504,12 @@ class BaseModel(metaclass=MetaModel):
 
 
 def create_model(
-    model_name: str, *, __config__: Type[BaseConfig] = None, __base__: Type[BaseModel] = None, **field_definitions: Any
+    model_name: str,
+    *,
+    __config__: Type[BaseConfig] = None,
+    __base__: Type[BaseModel] = None,
+    __module__: Optional[str] = None,
+    **field_definitions: Any,
 ) -> BaseModel:
     """
     Dynamically create a model.
@@ -542,7 +547,7 @@ def create_model(
             annotations[f_name] = f_annotation
         fields[f_name] = f_value
 
-    namespace: 'DictStrAny' = {'__annotations__': annotations}
+    namespace: 'DictStrAny' = {'__annotations__': annotations, '__module__': __module__}
     namespace.update(fields)
     if __config__:
         namespace['Config'] = inherit_config(__config__, BaseConfig)
@@ -565,8 +570,8 @@ def validate_model(  # noqa: C901 (ignore complexity)
     for name, field in model.__fields__.items():
         if type(field.type_) == ForwardRef:
             raise ConfigError(
-                f"field {field.name} not yet prepared and type is still a ForwardRef, "
-                f"you'll need to call {model.__class__.__name__}.update_forward_refs()"
+                f'field "{field.name}" not yet prepared so type is still a ForwardRef, '
+                f'you might need to call {model.__class__.__name__}.update_forward_refs().'
             )
 
         value = input_data.get(field.alias, _missing)
diff --git a/tests/test_py37.py b/tests/test_py37.py
index 382a4ca..68ed363 100644
--- a/tests/test_py37.py
+++ b/tests/test_py37.py
@@ -122,4 +122,21 @@ class Foo(BaseModel):
     )
     with pytest.raises(ConfigError) as exc_info:
         module.Foo(b=123)
-    assert str(exc_info.value).startswith('field b not yet prepared and type is still a ForwardRef')
+    assert str(exc_info.value).startswith('field "b" not yet prepared so type is still a ForwardRef')
+
+
+@skip_not_37
+def test_forward_ref_dataclass(create_module):
+    module = create_module(
+        """
+from __future__ import annotations
+from pydantic import UrlStr
+from pydantic.dataclasses import dataclass
+
+@dataclass
+class Dataclass:
+    url: UrlStr
+    """
+    )
+    m = module.Dataclass('http://example.com  ')
+    assert m.url == 'http://example.com'