diff --git a/cmd/compose/build.go b/cmd/compose/build.go
index 0172e1da7..512e6f588 100644
--- a/cmd/compose/build.go
+++ b/cmd/compose/build.go
@@ -21,6 +21,7 @@ import (
 	"fmt"
 	"os"
 
+	"github.com/compose-spec/compose-go/cli"
 	"github.com/compose-spec/compose-go/types"
 	"github.com/spf13/cobra"
 
@@ -83,7 +84,7 @@ func buildCommand(p *projectOptions, backend api.Service) *cobra.Command {
 }
 
 func runBuild(ctx context.Context, backend api.Service, opts buildOptions, services []string) error {
-	project, err := opts.toProject(services)
+	project, err := opts.toProject(services, cli.WithResolvedPaths(true))
 	if err != nil {
 		return err
 	}
diff --git a/cmd/compose/compose.go b/cmd/compose/compose.go
index b41e2333e..9634245eb 100644
--- a/cmd/compose/compose.go
+++ b/cmd/compose/compose.go
@@ -105,7 +105,7 @@ func (o *projectOptions) WithProject(fn ProjectFunc) func(cmd *cobra.Command, ar
 // WithServices creates a cobra run command from a ProjectFunc based on configured project options and selected services
 func (o *projectOptions) WithServices(fn ProjectServicesFunc) func(cmd *cobra.Command, args []string) error {
 	return Adapt(func(ctx context.Context, args []string) error {
-		project, err := o.toProject(args)
+		project, err := o.toProject(args, cli.WithResolvedPaths(true))
 		if err != nil {
 			return err
 		}
diff --git a/cmd/compose/convert.go b/cmd/compose/convert.go
index 8a779681e..59eb31780 100644
--- a/cmd/compose/convert.go
+++ b/cmd/compose/convert.go
@@ -39,15 +39,15 @@ import (
 
 type convertOptions struct {
 	*projectOptions
-	Format        string
-	Output        string
-	quiet         bool
-	resolve       bool
-	noInterpolate bool
-	services      bool
-	volumes       bool
-	profiles      bool
-	hash          string
+	Format              string
+	Output              string
+	quiet               bool
+	resolveImageDigests bool
+	noInterpolate       bool
+	services            bool
+	volumes             bool
+	profiles            bool
+	hash                string
 }
 
 var addFlagsFuncs []func(cmd *cobra.Command, opts *convertOptions)
@@ -90,7 +90,7 @@ func convertCommand(p *projectOptions, backend api.Service) *cobra.Command {
 	}
 	flags := cmd.Flags()
 	flags.StringVar(&opts.Format, "format", "yaml", "Format the output. Values: [yaml | json]")
-	flags.BoolVar(&opts.resolve, "resolve-image-digests", false, "Pin image tags to digests.")
+	flags.BoolVar(&opts.resolveImageDigests, "resolve-image-digests", false, "Pin image tags to digests.")
 	flags.BoolVarP(&opts.quiet, "quiet", "q", false, "Only validate the configuration, don't print anything.")
 	flags.BoolVar(&opts.noInterpolate, "no-interpolate", false, "Don't interpolate environment variables.")
 
@@ -108,12 +108,12 @@ func convertCommand(p *projectOptions, backend api.Service) *cobra.Command {
 
 func runConvert(ctx context.Context, backend api.Service, opts convertOptions, services []string) error {
 	var json []byte
-	project, err := opts.toProject(services, cli.WithInterpolation(!opts.noInterpolate))
+	project, err := opts.toProject(services, cli.WithInterpolation(!opts.noInterpolate), cli.WithResolvedPaths(false))
 	if err != nil {
 		return err
 	}
 
-	if opts.resolve {
+	if opts.resolveImageDigests {
 		configFile := cliconfig.LoadDefaultConfigFile(os.Stderr)
 
 		resolver := remotes.CreateResolver(configFile)
diff --git a/cmd/compose/exec.go b/cmd/compose/exec.go
index 91c595315..9d2370475 100644
--- a/cmd/compose/exec.go
+++ b/cmd/compose/exec.go
@@ -21,6 +21,7 @@ import (
 	"fmt"
 	"os"
 
+	cgo "github.com/compose-spec/compose-go/cli"
 	"github.com/containerd/console"
 	"github.com/docker/cli/cli"
 	"github.com/spf13/cobra"
@@ -77,7 +78,7 @@ func execCommand(p *projectOptions, backend api.Service) *cobra.Command {
 }
 
 func runExec(ctx context.Context, backend api.Service, opts execOpts) error {
-	project, err := opts.toProject(nil)
+	project, err := opts.toProject(nil, cgo.WithResolvedPaths(true))
 	if err != nil {
 		return err
 	}
diff --git a/cmd/compose/run.go b/cmd/compose/run.go
index d60f35184..522fb64e5 100644
--- a/cmd/compose/run.go
+++ b/cmd/compose/run.go
@@ -22,6 +22,7 @@ import (
 	"os"
 	"strings"
 
+	cgo "github.com/compose-spec/compose-go/cli"
 	"github.com/compose-spec/compose-go/loader"
 	"github.com/compose-spec/compose-go/types"
 	"github.com/mattn/go-isatty"
@@ -120,7 +121,7 @@ func runCommand(p *projectOptions, backend api.Service) *cobra.Command {
 			return nil
 		}),
 		RunE: Adapt(func(ctx context.Context, args []string) error {
-			project, err := p.toProject([]string{opts.Service})
+			project, err := p.toProject([]string{opts.Service}, cgo.WithResolvedPaths(true))
 			if err != nil {
 				return err
 			}
diff --git a/go.mod b/go.mod
index 323eee044..0d231e7b8 100644
--- a/go.mod
+++ b/go.mod
@@ -6,7 +6,7 @@ require (
 	github.com/AlecAivazis/survey/v2 v2.2.3
 	github.com/buger/goterm v1.0.0
 	github.com/cnabio/cnab-to-oci v0.3.1-beta1
-	github.com/compose-spec/compose-go v0.0.0-20210901090333-feb401cda7f7
+	github.com/compose-spec/compose-go v0.0.0-20210906143156-938b039f7805
 	github.com/containerd/console v1.0.2
 	github.com/containerd/containerd v1.5.4
 	github.com/distribution/distribution/v3 v3.0.0-20210316161203-a01c71e2477e
diff --git a/go.sum b/go.sum
index 1285bbd95..854f9d0c0 100644
--- a/go.sum
+++ b/go.sum
@@ -192,8 +192,8 @@ github.com/cncf/udpa/go v0.0.0-20200629203442-efcf912fb354/go.mod h1:WmhPx2Nbnht
 github.com/cncf/udpa/go v0.0.0-20201120205902-5459f2c99403/go.mod h1:WmhPx2Nbnhtbo57+VJT5O0JRkEi1Wbu0z5j0R8u5Hbk=
 github.com/cockroachdb/datadriven v0.0.0-20190809214429-80d97fb3cbaa/go.mod h1:zn76sxSg3SzpJ0PPJaLDCu+Bu0Lg3sKTORVIj19EIF8=
 github.com/codahale/hdrhistogram v0.0.0-20160425231609-f8ad88b59a58/go.mod h1:sE/e/2PUdi/liOCUjSTXgM1o87ZssimdTWN964YiIeI=
-github.com/compose-spec/compose-go v0.0.0-20210901090333-feb401cda7f7 h1:wI9VC+EgX61YYB/xyQVb9BBfsFOklZ/BinipIpFcWn4=
-github.com/compose-spec/compose-go v0.0.0-20210901090333-feb401cda7f7/go.mod h1:Hnmn5ZCVA3sSBN2urjCZNNIyNqCPayRGH7PmMSaV2Q0=
+github.com/compose-spec/compose-go v0.0.0-20210906143156-938b039f7805 h1:iFShT4oPik+NnXdzksa4yLvJYDDZBPMjHPN3qtJaXPA=
+github.com/compose-spec/compose-go v0.0.0-20210906143156-938b039f7805/go.mod h1:Hnmn5ZCVA3sSBN2urjCZNNIyNqCPayRGH7PmMSaV2Q0=
 github.com/containerd/aufs v0.0.0-20200908144142-dab0cbea06f4/go.mod h1:nukgQABAEopAHvB6j7cnP5zJ+/3aVcE7hCYqvIwAHyE=
 github.com/containerd/aufs v0.0.0-20201003224125-76a6863f2989/go.mod h1:AkGGQs9NM2vtYHaUen+NljV0/baGCAPELGm2q9ZXpWU=
 github.com/containerd/aufs v0.0.0-20210316121734-20793ff83c97/go.mod h1:kL5kd6KM5TzQjR79jljyi4olc1Vrx6XBlcyj3gNv2PU=