diff --git a/pkg/compose/plugins.go b/pkg/compose/plugins.go
index a905546fe..315f464cd 100644
--- a/pkg/compose/plugins.go
+++ b/pkg/compose/plugins.go
@@ -61,15 +61,33 @@ func (s *composeService) runPlugin(ctx context.Context, project *types.Project,
 
 	cmd := s.setupPluginCommand(ctx, project, provider, plugin.Path, command)
 
-	eg := errgroup.Group{}
-	stdout, err := cmd.StdoutPipe()
+	variables, err := s.executePlugin(ctx, cmd, command, service)
 	if err != nil {
 		return err
 	}
 
+	for name, s := range project.Services {
+		if _, ok := s.DependsOn[service.Name]; ok {
+			prefix := strings.ToUpper(service.Name) + "_"
+			for key, val := range variables {
+				s.Environment[prefix+key] = &val
+			}
+			project.Services[name] = s
+		}
+	}
+	return nil
+}
+
+func (s *composeService) executePlugin(ctx context.Context, cmd *exec.Cmd, command string, service types.ServiceConfig) (types.Mapping, error) {
+	eg := errgroup.Group{}
+	stdout, err := cmd.StdoutPipe()
+	if err != nil {
+		return nil, err
+	}
+
 	err = cmd.Start()
 	if err != nil {
-		return err
+		return nil, err
 	}
 	eg.Go(cmd.Wait)
 
@@ -79,7 +97,17 @@ func (s *composeService) runPlugin(ctx context.Context, project *types.Project,
 	variables := types.Mapping{}
 
 	pw := progress.ContextWriter(ctx)
-	pw.Event(progress.CreatingEvent(service.Name))
+	var action string
+	switch command {
+	case "up":
+		pw.Event(progress.CreatingEvent(service.Name))
+		action = "create"
+	case "down":
+		pw.Event(progress.RemovingEvent(service.Name))
+		action = "remove"
+	default:
+		return nil, fmt.Errorf("unsupported plugin command: %s", command)
+	}
 	for {
 		var msg JsonMessage
 		err = decoder.Decode(&msg)
@@ -87,42 +115,37 @@ func (s *composeService) runPlugin(ctx context.Context, project *types.Project,
 			break
 		}
 		if err != nil {
-			return err
+			return nil, err
 		}
 		switch msg.Type {
 		case ErrorType:
 			pw.Event(progress.ErrorMessageEvent(service.Name, "error"))
-			return errors.New(msg.Message)
+			return nil, errors.New(msg.Message)
 		case InfoType:
 			pw.Event(progress.ErrorMessageEvent(service.Name, msg.Message))
 		case SetEnvType:
 			key, val, found := strings.Cut(msg.Message, "=")
 			if !found {
-				return fmt.Errorf("invalid response from plugin: %s", msg.Message)
+				return nil, fmt.Errorf("invalid response from plugin: %s", msg.Message)
 			}
 			variables[key] = val
 		default:
-			return fmt.Errorf("invalid response from plugin: %s", msg.Type)
+			return nil, fmt.Errorf("invalid response from plugin: %s", msg.Type)
 		}
 	}
 
 	err = eg.Wait()
 	if err != nil {
 		pw.Event(progress.ErrorMessageEvent(service.Name, err.Error()))
-		return fmt.Errorf("failed to create external service: %s", err.Error())
+		return nil, fmt.Errorf("failed to %s external service: %s", action, err.Error())
 	}
-	pw.Event(progress.CreatedEvent(service.Name))
-
-	prefix := strings.ToUpper(service.Name) + "_"
-	for name, s := range project.Services {
-		if _, ok := s.DependsOn[service.Name]; ok {
-			for key, val := range variables {
-				s.Environment[prefix+key] = &val
-			}
-			project.Services[name] = s
-		}
+	switch command {
+	case "up":
+		pw.Event(progress.CreatedEvent(service.Name))
+	case "down":
+		pw.Event(progress.RemovedEvent(service.Name))
 	}
-	return nil
+	return variables, nil
 }
 
 func (s *composeService) getPluginBinaryPath(providerType string) (*manager.Plugin, error) {