diff --git a/compose/config/config.py b/compose/config/config.py
index 4fddac822..861a3e9bf 100644
--- a/compose/config/config.py
+++ b/compose/config/config.py
@@ -128,7 +128,7 @@ SUPPORTED_FILENAMES = [
     'docker-compose.yaml',
 ]
 
-DEFAULT_OVERRIDE_FILENAME = 'docker-compose.override.yml'
+DEFAULT_OVERRIDE_FILENAMES = ('docker-compose.override.yml', 'docker-compose.override.yaml')
 
 
 log = logging.getLogger(__name__)
@@ -292,8 +292,11 @@ def get_default_config_files(base_dir):
 
 
 def get_default_override_file(path):
-    override_filename = os.path.join(path, DEFAULT_OVERRIDE_FILENAME)
-    return [override_filename] if os.path.exists(override_filename) else []
+    for default_override_filename in DEFAULT_OVERRIDE_FILENAMES:
+        override_filename = os.path.join(path, default_override_filename)
+        if os.path.exists(override_filename):
+            return [override_filename]
+    return []
 
 
 def find_candidates_in_parent_dirs(filenames, path):
diff --git a/tests/acceptance/cli_test.py b/tests/acceptance/cli_test.py
index 30eff1b6a..f6c074364 100644
--- a/tests/acceptance/cli_test.py
+++ b/tests/acceptance/cli_test.py
@@ -2149,3 +2149,19 @@ class CLITestCase(DockerClientTestCase):
         assert 'busybox' in result.stdout
         assert 'multiplecomposefiles_another_1' in result.stdout
         assert 'multiplecomposefiles_simple_1' in result.stdout
+
+    def test_up_with_override_yaml(self):
+        self.base_dir = 'tests/fixtures/override-yaml-files'
+        self._project = get_project(self.base_dir, [])
+        self.dispatch(
+            [
+                'up', '-d',
+            ],
+            None)
+
+        containers = self.project.containers()
+        self.assertEqual(len(containers), 2)
+
+        web, db = containers
+        self.assertEqual(web.human_readable_command, 'sleep 100')
+        self.assertEqual(db.human_readable_command, 'top')
diff --git a/tests/fixtures/override-yaml-files/docker-compose.override.yaml b/tests/fixtures/override-yaml-files/docker-compose.override.yaml
new file mode 100644
index 000000000..58c673482
--- /dev/null
+++ b/tests/fixtures/override-yaml-files/docker-compose.override.yaml
@@ -0,0 +1,3 @@
+
+db:
+    command: "top"
diff --git a/tests/fixtures/override-yaml-files/docker-compose.yml b/tests/fixtures/override-yaml-files/docker-compose.yml
new file mode 100644
index 000000000..5f2909d69
--- /dev/null
+++ b/tests/fixtures/override-yaml-files/docker-compose.yml
@@ -0,0 +1,10 @@
+
+web:
+    image: busybox:latest
+    command: "sleep 100"
+    links:
+        - db
+
+db:
+    image: busybox:latest
+    command: "sleep 200"