diff --git a/aci/backend.go b/aci/backend.go
index a5e084253..a5890f33f 100644
--- a/aci/backend.go
+++ b/aci/backend.go
@@ -44,14 +44,6 @@ const (
 	composeContainerSeparator = "_"
 )
 
-// ContextParams options for creating ACI context
-type ContextParams struct {
-	Description    string
-	Location       string
-	SubscriptionID string
-	ResourceGroup  string
-}
-
 // LoginParams azure login options
 type LoginParams struct {
 	TenantID     string
diff --git a/aci/context.go b/aci/context.go
index 21784f2fc..512cd848a 100644
--- a/aci/context.go
+++ b/aci/context.go
@@ -31,6 +31,22 @@ import (
 	"github.com/docker/compose-cli/prompt"
 )
 
+// ContextParams options for creating ACI context
+type ContextParams struct {
+	Description    string
+	Location       string
+	SubscriptionID string
+	ResourceGroup  string
+}
+
+// ErrSubscriptionNotFound is returned when a required subscription is not found
+var ErrSubscriptionNotFound = errors.New("subscription not found")
+
+// IsSubscriptionNotFoundError returns true if the unwrapped error is IsSubscriptionNotFoundError
+func IsSubscriptionNotFoundError(err error) bool {
+	return errors.Is(err, ErrSubscriptionNotFound)
+}
+
 type contextCreateACIHelper struct {
 	selector            prompt.UI
 	resourceGroupHelper ResourceGroupHelper
@@ -44,14 +60,21 @@ func newContextCreateHelper() contextCreateACIHelper {
 }
 
 func (helper contextCreateACIHelper) createContextData(ctx context.Context, opts ContextParams) (interface{}, string, error) {
-	var subscriptionID string
+	subs, err := helper.resourceGroupHelper.GetSubscriptionIDs(ctx)
+	if err != nil {
+		return nil, "", err
+	}
+	subscriptionID := ""
 	if opts.SubscriptionID != "" {
-		subscriptionID = opts.SubscriptionID
-	} else {
-		subs, err := helper.resourceGroupHelper.GetSubscriptionIDs(ctx)
-		if err != nil {
-			return nil, "", err
+		for _, sub := range subs {
+			if *sub.SubscriptionID == opts.SubscriptionID {
+				subscriptionID = opts.SubscriptionID
+			}
 		}
+		if subscriptionID == "" {
+			return nil, "", ErrSubscriptionNotFound
+		}
+	} else {
 		subscriptionID, err = helper.chooseSub(subs)
 		if err != nil {
 			return nil, "", err
@@ -59,8 +82,6 @@ func (helper contextCreateACIHelper) createContextData(ctx context.Context, opts
 	}
 
 	var group resources.Group
-	var err error
-
 	if opts.ResourceGroup != "" {
 		group, err = helper.resourceGroupHelper.GetGroup(ctx, subscriptionID, opts.ResourceGroup)
 		if err != nil {
diff --git a/aci/context_test.go b/aci/context_test.go
index d5b50a8f3..0453158cb 100644
--- a/aci/context_test.go
+++ b/aci/context_test.go
@@ -51,6 +51,7 @@ func TestCreateSpecifiedSubscriptionAndGroup(t *testing.T) {
 	ctx := context.TODO()
 	opts := options("1234", "myResourceGroup")
 	m := testContextMocks()
+	m.resourceGroupHelper.On("GetSubscriptionIDs", ctx).Return([]subscription.Model{subModel("1234", "Subscription1")}, nil)
 	m.resourceGroupHelper.On("GetGroup", ctx, "1234", "myResourceGroup").Return(group("myResourceGroup", "eastus"), nil)
 
 	data, description, err := m.contextCreateHelper.createContextData(ctx, opts)
@@ -64,6 +65,7 @@ func TestErrorOnNonExistentResourceGroup(t *testing.T) {
 	opts := options("1234", "myResourceGroup")
 	notFoundError := errors.New(`Not Found: "myResourceGroup"`)
 	m := testContextMocks()
+	m.resourceGroupHelper.On("GetSubscriptionIDs", ctx).Return([]subscription.Model{subModel("1234", "Subscription1")}, nil)
 	m.resourceGroupHelper.On("GetGroup", ctx, "1234", "myResourceGroup").Return(resources.Group{}, notFoundError)
 
 	data, description, err := m.contextCreateHelper.createContextData(ctx, opts)
@@ -72,10 +74,23 @@ func TestErrorOnNonExistentResourceGroup(t *testing.T) {
 	assert.Error(t, err, "Could not find resource group \"myResourceGroup\": Not Found: \"myResourceGroup\"")
 }
 
+func TestErrorOnNonExistentSubscriptionID(t *testing.T) {
+	ctx := context.TODO()
+	opts := options("otherSubscription", "myResourceGroup")
+	m := testContextMocks()
+	m.resourceGroupHelper.On("GetSubscriptionIDs", ctx).Return([]subscription.Model{subModel("1234", "Subscription1")}, nil)
+
+	data, description, err := m.contextCreateHelper.createContextData(ctx, opts)
+	assert.Assert(t, cmp.Nil(data))
+	assert.Equal(t, description, "")
+	assert.Assert(t, err == ErrSubscriptionNotFound)
+}
+
 func TestCreateNewResourceGroup(t *testing.T) {
 	ctx := context.TODO()
 	opts := options("1234", "")
 	m := testContextMocks()
+	m.resourceGroupHelper.On("GetSubscriptionIDs", ctx).Return([]subscription.Model{subModel("1234", "Subscription1")}, nil)
 	m.resourceGroupHelper.On("GetGroup", ctx, "1234", "myResourceGroup").Return(group("myResourceGroup", "eastus"), nil)
 
 	selectOptions := []string{"create a new resource group", "group1 (eastus)", "group2 (westeurope)"}
@@ -97,6 +112,7 @@ func TestSelectExistingResourceGroup(t *testing.T) {
 	opts := options("1234", "")
 	selectOptions := []string{"create a new resource group", "group1 (eastus)", "group2 (westeurope)"}
 	m := testContextMocks()
+	m.resourceGroupHelper.On("GetSubscriptionIDs", ctx).Return([]subscription.Model{subModel("1234", "Subscription1")}, nil)
 	m.userPrompt.On("Select", "Select a resource group", selectOptions).Return(2, nil)
 	m.resourceGroupHelper.On("ListGroups", ctx, "1234").Return([]resources.Group{
 		group("group1", "eastus"),
diff --git a/cli/cmd/context/create_aci.go b/cli/cmd/context/create_aci.go
index ac07f8e4c..aeef3e2ff 100644
--- a/cli/cmd/context/create_aci.go
+++ b/cli/cmd/context/create_aci.go
@@ -62,6 +62,9 @@ func runCreateAci(ctx context.Context, contextName string, opts aci.ContextParam
 	}
 	contextData, description, err := getAciContextData(ctx, opts)
 	if err != nil {
+		if aci.IsSubscriptionNotFoundError(err) {
+			return errors.New("could not find the requested subscription from your Azure login. You might need to specify a tenant ID with docker login azure --tenant-id xxx")
+		}
 		return err
 	}
 	return createDockerContext(ctx, contextName, store.AciContextType, description, contextData)