The <xsl:apply-templates> element first selects a set of nodes using the query specified in the select attribute. If this attribute is left unspecified, all children of the current node are selected by default.To find an appropriate <xsl:template> to apply each of the selected nodes, <xsl:apply-templates> directs the XSLT processor Templates are tested for applicability by comparing the node to the XPath expression specified in the template's match attribute. If more than one template satisfies the match pattern, then one appearing with highest priority is choosed. If templates have same priority, then last in style sheet is chosen.

It is used to process nodes selected by an expression instead of processing all children. The value of the select attribute is an expression. The expression must evaluate to a node-set. unless a sorting specification is present the selected set of nodes is processed in document order.

It allows an element to be processed multiple times, each time producing a different result. If <xsl:template> does not have a match attribute then it must not have a mode attribute also. If an <xsl:apply-templates> element has a mode attribute, it applies only to those template rules from <xsl:template> elements that have a mode attribute with the same value; if an <xsl:apply-templates> element does not have a mode attribute, it applies only to those template rules from <xsl:template> elements that do not have a mode attribute.