diff --git a/pkg/compose/plugins.go b/pkg/compose/plugins.go
index c4fdbd2e6..ed489d4a6 100644
--- a/pkg/compose/plugins.go
+++ b/pkg/compose/plugins.go
@@ -30,7 +30,6 @@ import (
 	"github.com/docker/cli/cli-plugins/manager"
 	"github.com/docker/cli/cli-plugins/socket"
 	"github.com/docker/compose/v2/pkg/progress"
-	"github.com/docker/docker/errdefs"
 	"github.com/spf13/cobra"
 	"go.opentelemetry.io/otel"
 	"go.opentelemetry.io/otel/propagation"
@@ -48,41 +47,15 @@ const (
 	SetEnvType = "setenv"
 )
 
-func (s *composeService) runPlugin(ctx context.Context, project *types.Project, service types.ServiceConfig, command string) error { //nolint:gocyclo
-	x := *service.Provider
+func (s *composeService) runPlugin(ctx context.Context, project *types.Project, service types.ServiceConfig, command string) error {
+	provider := *service.Provider
 
-	// Only support Docker CLI plugins for first iteration. Could support any binary from PATH
-	plugin, err := manager.GetPlugin(x.Type, s.dockerCli, &cobra.Command{})
+	path, err := s.getPluginBinaryPath(provider.Type)
 	if err != nil {
-		if errdefs.IsNotFound(err) {
-			return fmt.Errorf("unsupported external service type %s", x.Type)
-		}
 		return err
 	}
 
-	args := []string{"compose", "--project-name", project.Name, command}
-	for k, v := range x.Options {
-		args = append(args, fmt.Sprintf("--%s=%s", k, v))
-	}
-
-	cmd := exec.CommandContext(ctx, plugin.Path, args...)
-	// Remove DOCKER_CLI_PLUGIN... variable so plugin can detect it run standalone
-	cmd.Env = filter(os.Environ(), manager.ReexecEnvvar)
-
-	// Use docker/cli mechanism to propagate termination signal to child process
-	server, err := socket.NewPluginServer(nil)
-	if err != nil {
-		defer server.Close() //nolint:errcheck
-		cmd.Cancel = server.Close
-		cmd.Env = replace(cmd.Env, socket.EnvKey, server.Addr().String())
-	}
-
-	cmd.Env = append(cmd.Env, fmt.Sprintf("DOCKER_CONTEXT=%s", s.dockerCli.CurrentContext()))
-
-	// propagate opentelemetry context to child process, see https://github.com/open-telemetry/oteps/blob/main/text/0258-env-context-baggage-carriers.md
-	carrier := propagation.MapCarrier{}
-	otel.GetTextMapPropagator().Inject(ctx, &carrier)
-	cmd.Env = append(cmd.Env, types.Mapping(carrier).Values()...)
+	cmd := s.setupPluginCommand(ctx, project, provider, path, command)
 
 	eg := errgroup.Group{}
 	stdout, err := cmd.StdoutPipe()
@@ -147,3 +120,39 @@ func (s *composeService) runPlugin(ctx context.Context, project *types.Project,
 	}
 	return nil
 }
+
+func (s *composeService) getPluginBinaryPath(providerType string) (string, error) {
+	// Only support Docker CLI plugins for first iteration. Could support any binary from PATH
+	plugin, err := manager.GetPlugin(providerType, s.dockerCli, &cobra.Command{})
+	if err != nil {
+		return "", err
+	}
+	return plugin.Path, nil
+}
+
+func (s *composeService) setupPluginCommand(ctx context.Context, project *types.Project, provider types.ServiceProviderConfig, path, command string) *exec.Cmd {
+	args := []string{"compose", "--project-name", project.Name, command}
+	for k, v := range provider.Options {
+		args = append(args, fmt.Sprintf("--%s=%s", k, v))
+	}
+
+	cmd := exec.CommandContext(ctx, path, args...)
+	// Remove DOCKER_CLI_PLUGIN... variable so plugin can detect it run standalone
+	cmd.Env = filter(os.Environ(), manager.ReexecEnvvar)
+
+	// Use docker/cli mechanism to propagate termination signal to child process
+	server, err := socket.NewPluginServer(nil)
+	if err != nil {
+		defer server.Close() //nolint:errcheck
+		cmd.Cancel = server.Close
+		cmd.Env = replace(cmd.Env, socket.EnvKey, server.Addr().String())
+	}
+
+	cmd.Env = append(cmd.Env, fmt.Sprintf("DOCKER_CONTEXT=%s", s.dockerCli.CurrentContext()))
+
+	// propagate opentelemetry context to child process, see https://github.com/open-telemetry/oteps/blob/main/text/0258-env-context-baggage-carriers.md
+	carrier := propagation.MapCarrier{}
+	otel.GetTextMapPropagator().Inject(ctx, &carrier)
+	cmd.Env = append(cmd.Env, types.Mapping(carrier).Values()...)
+	return cmd
+}