diff --git a/compose/config/config.py b/compose/config/config.py
index d5aaf9538..a9f82a29d 100644
--- a/compose/config/config.py
+++ b/compose/config/config.py
@@ -519,13 +519,13 @@ def process_config_file(config_file, environment, service_name=None):
             processed_config['secrets'] = interpolate_config_section(
                 config_file,
                 config_file.get_secrets(),
-                'secrets',
+                'secret',
                 environment)
         if config_file.version >= const.COMPOSEFILE_V3_3:
             processed_config['configs'] = interpolate_config_section(
                 config_file,
                 config_file.get_configs(),
-                'configs',
+                'config',
                 environment
             )
     else:
diff --git a/compose/config/interpolation.py b/compose/config/interpolation.py
index df9c988e7..9d7e428c9 100644
--- a/compose/config/interpolation.py
+++ b/compose/config/interpolation.py
@@ -2,6 +2,7 @@ from __future__ import absolute_import
 from __future__ import unicode_literals
 
 import logging
+import re
 from string import Template
 
 import six
@@ -44,9 +45,13 @@ def interpolate_environment_variables(version, config, section, environment):
     )
 
 
+def get_config_path(config_key, section, name):
+    return '{}.{}.{}'.format(section, name, config_key)
+
+
 def interpolate_value(name, config_key, value, section, interpolator):
     try:
-        return recursive_interpolate(value, interpolator)
+        return recursive_interpolate(value, interpolator, get_config_path(config_key, section, name))
     except InvalidInterpolation as e:
         raise ConfigurationError(
             'Invalid interpolation format for "{config_key}" option '
@@ -57,16 +62,19 @@ def interpolate_value(name, config_key, value, section, interpolator):
                 string=e.string))
 
 
-def recursive_interpolate(obj, interpolator):
+def recursive_interpolate(obj, interpolator, config_path):
+    def append(config_path, key):
+        return '{}.{}'.format(config_path, key)
+
     if isinstance(obj, six.string_types):
-        return interpolator.interpolate(obj)
+        return converter.convert(config_path, interpolator.interpolate(obj))
     if isinstance(obj, dict):
         return dict(
-            (key, recursive_interpolate(val, interpolator))
+            (key, recursive_interpolate(val, interpolator, append(config_path, key)))
             for (key, val) in obj.items()
         )
     if isinstance(obj, list):
-        return [recursive_interpolate(val, interpolator) for val in obj]
+        return [recursive_interpolate(val, interpolator, config_path) for val in obj]
     return obj
 
 
@@ -100,3 +108,80 @@ class TemplateWithDefaults(Template):
 class InvalidInterpolation(Exception):
     def __init__(self, string):
         self.string = string
+
+
+PATH_JOKER = '[^.]+'
+
+
+def re_path(*args):
+    return re.compile('^{}$'.format('.'.join(args)))
+
+
+def re_path_basic(section, name):
+    return re_path(section, PATH_JOKER, name)
+
+
+def service_path(*args):
+    return re_path('service', PATH_JOKER, *args)
+
+
+def to_boolean(s):
+    s = s.lower()
+    if s in ['y', 'yes', 'true', 'on']:
+        return True
+    elif s in ['n', 'no', 'false', 'off']:
+        return False
+    raise ValueError('"{}" is not a valid boolean value'.format(s))
+
+
+def to_int(s):
+    # We must be able to handle octal representation for `mode` values notably
+    if six.PY3 and re.match('^0[0-9]+$', s.strip()):
+        s = '0o' + s[1:]
+    return int(s, base=0)
+
+
+class ConversionMap(object):
+    map = {
+        service_path('blkio_config', 'weight'): to_int,
+        service_path('blkio_config', 'weight_device', 'weight'): to_int,
+        service_path('cpus'): float,
+        service_path('cpu_count'): to_int,
+        service_path('configs', 'mode'): to_int,
+        service_path('secrets', 'mode'): to_int,
+        service_path('healthcheck', 'retries'): to_int,
+        service_path('healthcheck', 'disable'): to_boolean,
+        service_path('deploy', 'replicas'): to_int,
+        service_path('deploy', 'update_config', 'parallelism'): to_int,
+        service_path('deploy', 'update_config', 'max_failure_ratio'): float,
+        service_path('deploy', 'restart_policy', 'max_attempts'): to_int,
+        service_path('mem_swappiness'): to_int,
+        service_path('oom_score_adj'): to_int,
+        service_path('ports', 'target'): to_int,
+        service_path('ports', 'published'): to_int,
+        service_path('scale'): to_int,
+        service_path('ulimits', PATH_JOKER): to_int,
+        service_path('ulimits', PATH_JOKER, 'soft'): to_int,
+        service_path('ulimits', PATH_JOKER, 'hard'): to_int,
+        service_path('privileged'): to_boolean,
+        service_path('read_only'): to_boolean,
+        service_path('stdin_open'): to_boolean,
+        service_path('tty'): to_boolean,
+        service_path('volumes', 'read_only'): to_boolean,
+        service_path('volumes', 'volume', 'nocopy'): to_boolean,
+        re_path_basic('network', 'attachable'): to_boolean,
+        re_path_basic('network', 'external'): to_boolean,
+        re_path_basic('network', 'internal'): to_boolean,
+        re_path_basic('volume', 'external'): to_boolean,
+        re_path_basic('secret', 'external'): to_boolean,
+        re_path_basic('config', 'external'): to_boolean,
+    }
+
+    def convert(self, path, value):
+        for rexp in self.map.keys():
+            if rexp.match(path):
+                return self.map[rexp](value)
+        return value
+
+
+converter = ConversionMap()
diff --git a/tests/unit/config/interpolation_test.py b/tests/unit/config/interpolation_test.py
index 018a5621a..516f5c9e9 100644
--- a/tests/unit/config/interpolation_test.py
+++ b/tests/unit/config/interpolation_test.py
@@ -9,12 +9,22 @@ from compose.config.interpolation import Interpolator
 from compose.config.interpolation import InvalidInterpolation
 from compose.config.interpolation import TemplateWithDefaults
 from compose.const import COMPOSEFILE_V2_0 as V2_0
-from compose.const import COMPOSEFILE_V3_1 as V3_1
+from compose.const import COMPOSEFILE_V2_3 as V2_3
+from compose.const import COMPOSEFILE_V3_4 as V3_4
 
 
 @pytest.fixture
 def mock_env():
-    return Environment({'USER': 'jenny', 'FOO': 'bar'})
+    return Environment({
+        'USER': 'jenny',
+        'FOO': 'bar',
+        'TRUE': 'True',
+        'FALSE': 'OFF',
+        'POSINT': '50',
+        'NEGINT': '-200',
+        'FLOAT': '0.145',
+        'MODE': '0600',
+    })
 
 
 @pytest.fixture
@@ -102,7 +112,189 @@ def test_interpolate_environment_variables_in_secrets(mock_env):
         },
         'other': {},
     }
-    value = interpolate_environment_variables(V3_1, secrets, 'volume', mock_env)
+    value = interpolate_environment_variables(V3_4, secrets, 'secret', mock_env)
+    assert value == expected
+
+
+def test_interpolate_environment_services_convert_types_v2(mock_env):
+    entry = {
+        'service1': {
+            'blkio_config': {
+                'weight': '${POSINT}',
+                'weight_device': [{'file': '/dev/sda1', 'weight': '${POSINT}'}]
+            },
+            'cpus': '${FLOAT}',
+            'cpu_count': '$POSINT',
+            'healthcheck': {
+                'retries': '${POSINT:-3}',
+                'disable': '${FALSE}',
+                'command': 'true'
+            },
+            'mem_swappiness': '${DEFAULT:-127}',
+            'oom_score_adj': '${NEGINT}',
+            'scale': '${POSINT}',
+            'ulimits': {
+                'nproc': '${POSINT}',
+                'nofile': {
+                    'soft': '${POSINT}',
+                    'hard': '${DEFAULT:-40000}'
+                },
+            },
+            'privileged': '${TRUE}',
+            'read_only': '${DEFAULT:-no}',
+            'tty': '${DEFAULT:-N}',
+            'stdin_open': '${DEFAULT-on}',
+        }
+    }
+
+    expected = {
+        'service1': {
+            'blkio_config': {
+                'weight': 50,
+                'weight_device': [{'file': '/dev/sda1', 'weight': 50}]
+            },
+            'cpus': 0.145,
+            'cpu_count': 50,
+            'healthcheck': {
+                'retries': 50,
+                'disable': False,
+                'command': 'true'
+            },
+            'mem_swappiness': 127,
+            'oom_score_adj': -200,
+            'scale': 50,
+            'ulimits': {
+                'nproc': 50,
+                'nofile': {
+                    'soft': 50,
+                    'hard': 40000
+                },
+            },
+            'privileged': True,
+            'read_only': False,
+            'tty': False,
+            'stdin_open': True,
+        }
+    }
+
+    value = interpolate_environment_variables(V2_3, entry, 'service', mock_env)
+    assert value == expected
+
+
+def test_interpolate_environment_services_convert_types_v3(mock_env):
+    entry = {
+        'service1': {
+            'healthcheck': {
+                'retries': '${POSINT:-3}',
+                'disable': '${FALSE}',
+                'command': 'true'
+            },
+            'ulimits': {
+                'nproc': '${POSINT}',
+                'nofile': {
+                    'soft': '${POSINT}',
+                    'hard': '${DEFAULT:-40000}'
+                },
+            },
+            'privileged': '${TRUE}',
+            'read_only': '${DEFAULT:-no}',
+            'tty': '${DEFAULT:-N}',
+            'stdin_open': '${DEFAULT-on}',
+            'deploy': {
+                'update_config': {
+                    'parallelism': '${DEFAULT:-2}',
+                    'max_failure_ratio': '${FLOAT}',
+                },
+                'restart_policy': {
+                    'max_attempts': '$POSINT',
+                },
+                'replicas': '${DEFAULT-3}'
+            },
+            'ports': [{'target': '${POSINT}', 'published': '${DEFAULT:-5000}'}],
+            'configs': [{'mode': '${MODE}', 'source': 'config1'}],
+            'secrets': [{'mode': '${MODE}', 'source': 'secret1'}],
+        }
+    }
+
+    expected = {
+        'service1': {
+            'healthcheck': {
+                'retries': 50,
+                'disable': False,
+                'command': 'true'
+            },
+            'ulimits': {
+                'nproc': 50,
+                'nofile': {
+                    'soft': 50,
+                    'hard': 40000
+                },
+            },
+            'privileged': True,
+            'read_only': False,
+            'tty': False,
+            'stdin_open': True,
+            'deploy': {
+                'update_config': {
+                    'parallelism': 2,
+                    'max_failure_ratio': 0.145,
+                },
+                'restart_policy': {
+                    'max_attempts': 50,
+                },
+                'replicas': 3
+            },
+            'ports': [{'target': 50, 'published': 5000}],
+            'configs': [{'mode': 0o600, 'source': 'config1'}],
+            'secrets': [{'mode': 0o600, 'source': 'secret1'}],
+        }
+    }
+
+    value = interpolate_environment_variables(V3_4, entry, 'service', mock_env)
+    assert value == expected
+
+
+def test_interpolate_environment_network_convert_types(mock_env):
+    entry = {
+        'network1': {
+            'external': '${FALSE}',
+            'attachable': '${TRUE}',
+            'internal': '${DEFAULT:-false}'
+        }
+    }
+
+    expected = {
+        'network1': {
+            'external': False,
+            'attachable': True,
+            'internal': False,
+        }
+    }
+
+    value = interpolate_environment_variables(V3_4, entry, 'network', mock_env)
+    assert value == expected
+
+
+def test_interpolate_environment_external_resource_convert_types(mock_env):
+    entry = {
+        'resource1': {
+            'external': '${TRUE}',
+        }
+    }
+
+    expected = {
+        'resource1': {
+            'external': True,
+        }
+    }
+
+    value = interpolate_environment_variables(V3_4, entry, 'network', mock_env)
+    assert value == expected
+    value = interpolate_environment_variables(V3_4, entry, 'volume', mock_env)
+    assert value == expected
+    value = interpolate_environment_variables(V3_4, entry, 'secret', mock_env)
+    assert value == expected
+    value = interpolate_environment_variables(V3_4, entry, 'config', mock_env)
     assert value == expected