diff --git a/compose/config/config.py b/compose/config/config.py
index 0298b4e2d..f8c9773b3 100644
--- a/compose/config/config.py
+++ b/compose/config/config.py
@@ -1040,7 +1040,6 @@ def merge_service_dicts(base, override, version):
     md.merge_mapping('environment', parse_environment)
     md.merge_mapping('labels', parse_labels)
     md.merge_mapping('ulimits', parse_flat_dict)
-    md.merge_mapping('networks', parse_networks)
     md.merge_mapping('sysctls', parse_sysctls)
     md.merge_mapping('depends_on', parse_depends_on)
     md.merge_mapping('storage_opt', parse_flat_dict)
@@ -1050,6 +1049,7 @@ def merge_service_dicts(base, override, version):
     md.merge_sequence('security_opt', types.SecurityOpt.parse)
     md.merge_mapping('extra_hosts', parse_extra_hosts)
 
+    md.merge_field('networks', merge_networks, default={})
     for field in ['volumes', 'devices']:
         md.merge_field(field, merge_path_mappings)
 
@@ -1154,6 +1154,22 @@ def merge_deploy(base, override):
     return dict(md)
 
 
+def merge_networks(base, override):
+    merged_networks = {}
+    all_network_names = set(base) | set(override)
+    base = {k: {} for k in base} if isinstance(base, list) else base
+    override = {k: {} for k in override} if isinstance(override, list) else override
+    for network_name in all_network_names:
+        md = MergeDict(base.get(network_name, {}), override.get(network_name, {}))
+        md.merge_field('aliases', merge_unique_items_lists, [])
+        md.merge_field('link_local_ips', merge_unique_items_lists, [])
+        md.merge_scalar('priority')
+        md.merge_scalar('ipv4_address')
+        md.merge_scalar('ipv6_address')
+        merged_networks[network_name] = dict(md)
+    return merged_networks
+
+
 def merge_reservations(base, override):
     md = MergeDict(base, override)
     md.merge_scalar('cpus')
diff --git a/tests/unit/config/config_test.py b/tests/unit/config/config_test.py
index 787d8ff4a..39ff374d4 100644
--- a/tests/unit/config/config_test.py
+++ b/tests/unit/config/config_test.py
@@ -1085,8 +1085,43 @@ class ConfigTest(unittest.TestCase):
         details = config.ConfigDetails('.', [base_file, override_file])
         web_service = config.load(details).services[0]
         assert web_service['networks'] == {
-            'foobar': {'aliases': ['foo', 'bar']},
-            'baz': None
+            'foobar': {'aliases': ['bar', 'foo']},
+            'baz': {}
+        }
+
+    def test_load_with_multiple_files_mismatched_networks_format_inverse_order(self):
+        base_file = config.ConfigFile(
+            'override.yaml',
+            {
+                'version': '2',
+                'services': {
+                    'web': {
+                        'networks': ['baz']
+                    }
+                }
+            }
+        )
+        override_file = config.ConfigFile(
+            'base.yaml',
+            {
+                'version': '2',
+                'services': {
+                    'web': {
+                        'image': 'example/web',
+                        'networks': {
+                            'foobar': {'aliases': ['foo', 'bar']}
+                        }
+                    }
+                },
+                'networks': {'foobar': {}, 'baz': {}}
+            }
+        )
+
+        details = config.ConfigDetails('.', [base_file, override_file])
+        web_service = config.load(details).services[0]
+        assert web_service['networks'] == {
+            'foobar': {'aliases': ['bar', 'foo']},
+            'baz': {}
         }
 
     def test_load_with_multiple_files_v2(self):
@@ -3843,8 +3878,77 @@ class MergePortsTest(unittest.TestCase, MergeListsTest):
 
 class MergeNetworksTest(unittest.TestCase, MergeListsTest):
     config_name = 'networks'
-    base_config = ['frontend', 'backend']
-    override_config = ['monitoring']
+    base_config = {'default': {'aliases': ['foo.bar', 'foo.baz']}}
+    override_config = {'default': {'ipv4_address': '123.234.123.234'}}
+
+    def test_no_network_overrides(self):
+        service_dict = config.merge_service_dicts(
+            {self.config_name: self.base_config},
+            {self.config_name: self.override_config},
+            DEFAULT_VERSION)
+        assert service_dict[self.config_name] == {
+            'default': {
+                'aliases': ['foo.bar', 'foo.baz'],
+                'ipv4_address': '123.234.123.234'
+            }
+        }
+
+    def test_all_properties(self):
+        service_dict = config.merge_service_dicts(
+            {self.config_name: {
+                'default': {
+                    'aliases': ['foo.bar', 'foo.baz'],
+                    'link_local_ips': ['192.168.1.10', '192.168.1.11'],
+                    'ipv4_address': '111.111.111.111',
+                    'ipv6_address': 'FE80:CD00:0000:0CDE:1257:0000:211E:729C-first'
+                }
+            }},
+            {self.config_name: {
+                'default': {
+                    'aliases': ['foo.baz', 'foo.baz2'],
+                    'link_local_ips': ['192.168.1.11', '192.168.1.12'],
+                    'ipv4_address': '123.234.123.234',
+                    'ipv6_address': 'FE80:CD00:0000:0CDE:1257:0000:211E:729C-second'
+                }
+            }},
+            DEFAULT_VERSION)
+
+        assert service_dict[self.config_name] == {
+            'default': {
+                'aliases': ['foo.bar', 'foo.baz', 'foo.baz2'],
+                'link_local_ips': ['192.168.1.10', '192.168.1.11', '192.168.1.12'],
+                'ipv4_address': '123.234.123.234',
+                'ipv6_address': 'FE80:CD00:0000:0CDE:1257:0000:211E:729C-second'
+            }
+        }
+
+    def test_no_network_name_overrides(self):
+        service_dict = config.merge_service_dicts(
+            {
+                self.config_name: {
+                    'default': {
+                        'aliases': ['foo.bar', 'foo.baz'],
+                        'ipv4_address': '123.234.123.234'
+                    }
+                }
+            },
+            {
+                self.config_name: {
+                    'another_network': {
+                        'ipv4_address': '123.234.123.234'
+                    }
+                }
+            },
+            DEFAULT_VERSION)
+        assert service_dict[self.config_name] == {
+            'default': {
+                'aliases': ['foo.bar', 'foo.baz'],
+                'ipv4_address': '123.234.123.234'
+            },
+            'another_network': {
+                'ipv4_address': '123.234.123.234'
+            }
+        }
 
 
 class MergeStringsOrListsTest(unittest.TestCase):