diff --git a/pkg/e2e/fixtures/dependencies/Dockerfile b/pkg/e2e/fixtures/dependencies/Dockerfile
new file mode 100644
index 000000000..fe5992a8d
--- /dev/null
+++ b/pkg/e2e/fixtures/dependencies/Dockerfile
@@ -0,0 +1,16 @@
+#   Copyright 2020 Docker Compose CLI authors
+
+#   Licensed under the Apache License, Version 2.0 (the "License");
+#   you may not use this file except in compliance with the License.
+#   You may obtain a copy of the License at
+
+#       http://www.apache.org/licenses/LICENSE-2.0
+
+#   Unless required by applicable law or agreed to in writing, software
+#   distributed under the License is distributed on an "AS IS" BASIS,
+#   WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+#   See the License for the specific language governing permissions and
+#   limitations under the License.
+
+FROM busybox:1.35.0
+RUN echo "hello"
\ No newline at end of file
diff --git a/pkg/e2e/fixtures/dependencies/service-image-depends-on.yaml b/pkg/e2e/fixtures/dependencies/service-image-depends-on.yaml
new file mode 100644
index 000000000..313997836
--- /dev/null
+++ b/pkg/e2e/fixtures/dependencies/service-image-depends-on.yaml
@@ -0,0 +1,9 @@
+services:
+  foo:
+    image: built-image-dependency
+    build:
+      context: .
+  bar:
+    image: built-image-dependency
+    depends_on:
+      - foo
diff --git a/pkg/e2e/up_test.go b/pkg/e2e/up_test.go
index c86599c01..ecb4595b1 100644
--- a/pkg/e2e/up_test.go
+++ b/pkg/e2e/up_test.go
@@ -104,3 +104,22 @@ func TestUpDependenciesNotStopped(t *testing.T) {
 	RequireServiceState(t, c, "dependency", "running")
 	RequireServiceState(t, c, "orphan", "running")
 }
+
+func TestUpWithBuildDependencies(t *testing.T) {
+	c := NewParallelCLI(t)
+
+	t.Run("up with service using image build by an another service", func(t *testing.T) {
+		// ensure local test run does not reuse previously build image
+		c.RunDockerOrExitError(t, "rmi", "built-image-dependency")
+
+		res := c.RunDockerComposeCmd(t, "--project-directory", "fixtures/dependencies",
+			"-f", "fixtures/dependencies/service-image-depends-on.yaml", "up", "-d")
+
+		t.Cleanup(func() {
+			c.RunDockerComposeCmd(t, "--project-directory", "fixtures/dependencies",
+				"-f", "fixtures/dependencies/service-image-depends-on.yaml", "down", "--rmi", "all")
+		})
+
+		res.Assert(t, icmd.Success)
+	})
+}