diff --git a/cmd/compose/compose.go b/cmd/compose/compose.go
index 8bd1bccbe..a382f39ac 100644
--- a/cmd/compose/compose.go
+++ b/cmd/compose/compose.go
@@ -72,17 +72,16 @@ const (
 )
 
 // rawEnv load a dot env file using docker/cli key=value parser, without attempt to interpolate or evaluate values
-func rawEnv(r io.Reader, filename string, lookup func(key string) (string, bool)) (map[string]string, error) {
+func rawEnv(r io.Reader, filename string, vars map[string]string, lookup func(key string) (string, bool)) error {
 	lines, err := kvfile.ParseFromReader(r, lookup)
 	if err != nil {
-		return nil, fmt.Errorf("failed to parse env_file %s: %w", filename, err)
+		return fmt.Errorf("failed to parse env_file %s: %w", filename, err)
 	}
-	vars := types.Mapping{}
 	for _, line := range lines {
 		key, value, _ := strings.Cut(line, "=")
 		vars[key] = value
 	}
-	return vars, nil
+	return nil
 }
 
 func init() {
diff --git a/go.mod b/go.mod
index 92f3f4c22..5d74ab6ce 100644
--- a/go.mod
+++ b/go.mod
@@ -8,7 +8,7 @@ require (
 	github.com/Microsoft/go-winio v0.6.2
 	github.com/acarl005/stripansi v0.0.0-20180116102854-5a71ef0e047d
 	github.com/buger/goterm v1.0.4
-	github.com/compose-spec/compose-go/v2 v2.4.10-0.20250327151131-f48efd965e24
+	github.com/compose-spec/compose-go/v2 v2.5.0
 	github.com/containerd/containerd/v2 v2.0.4
 	github.com/containerd/platforms v1.0.0-rc.1
 	github.com/davecgh/go-spew v1.1.2-0.20180830191138-d8f796af33cc
@@ -205,3 +205,5 @@ require (
 	sigs.k8s.io/structured-merge-diff/v4 v4.4.1 // indirect
 	sigs.k8s.io/yaml v1.4.0 // indirect
 )
+
+replace github.com/compose-spec/compose-go/v2 => github.com/glours/compose-go/v2 v2.0.0-20250403082600-80aa75f06535
diff --git a/go.sum b/go.sum
index 64507bff8..67abde5ed 100644
--- a/go.sum
+++ b/go.sum
@@ -83,8 +83,6 @@ github.com/cloudflare/cfssl v0.0.0-20180223231731-4e2dcbde5004 h1:lkAMpLVBDaj17e
 github.com/cloudflare/cfssl v0.0.0-20180223231731-4e2dcbde5004/go.mod h1:yMWuSON2oQp+43nFtAV/uvKQIFpSPerB57DCt9t8sSA=
 github.com/codahale/rfc6979 v0.0.0-20141003034818-6a90f24967eb h1:EDmT6Q9Zs+SbUoc7Ik9EfrFqcylYqgPZ9ANSbTAntnE=
 github.com/codahale/rfc6979 v0.0.0-20141003034818-6a90f24967eb/go.mod h1:ZjrT6AXHbDs86ZSdt/osfBi5qfexBrKUdONk989Wnk4=
-github.com/compose-spec/compose-go/v2 v2.4.10-0.20250327151131-f48efd965e24 h1:dIo4KMeWqnbC/hcWm0kHf+AzEcgUdUpjO+1LEoEdhiI=
-github.com/compose-spec/compose-go/v2 v2.4.10-0.20250327151131-f48efd965e24/go.mod h1:vPlkN0i+0LjLf9rv52lodNMUTJF5YHVfHVGLLIP67NA=
 github.com/containerd/cgroups/v3 v3.0.5 h1:44na7Ud+VwyE7LIoJ8JTNQOa549a8543BmzaJHo6Bzo=
 github.com/containerd/cgroups/v3 v3.0.5/go.mod h1:SA5DLYnXO8pTGYiAHXz94qvLQTKfVM5GEVisn4jpins=
 github.com/containerd/console v1.0.4 h1:F2g4+oChYvBTsASRTz8NP6iIAi97J3TtSAsLbIFn4ro=
@@ -169,6 +167,8 @@ github.com/fvbommel/sortorder v1.1.0 h1:fUmoe+HLsBTctBDoaBwpQo5N+nrCp8g/BjKb/6ZQ
 github.com/fvbommel/sortorder v1.1.0/go.mod h1:uk88iVf1ovNn1iLfgUVU2F9o5eO30ui720w+kxuqRs0=
 github.com/fxamacker/cbor/v2 v2.7.0 h1:iM5WgngdRBanHcxugY4JySA0nk1wZorNOpTgCMedv5E=
 github.com/fxamacker/cbor/v2 v2.7.0/go.mod h1:pxXPTn3joSm21Gbwsv0w9OSA2y1HFR9qXEeXQVeNoDQ=
+github.com/glours/compose-go/v2 v2.0.0-20250403082600-80aa75f06535 h1:S/P6v3QxsMpkKn+2OSMPNkfSkadSjSHoMGAc/eBZgMU=
+github.com/glours/compose-go/v2 v2.0.0-20250403082600-80aa75f06535/go.mod h1:vPlkN0i+0LjLf9rv52lodNMUTJF5YHVfHVGLLIP67NA=
 github.com/go-kit/kit v0.8.0/go.mod h1:xBxKIO96dXMWWy0MnWVtmwkA9/13aqxPnvrjFYMA2as=
 github.com/go-logfmt/logfmt v0.3.0/go.mod h1:Qt1PoO58o5twSAckw1HlFXLmHsOX5/0LbT9GBnD5lWE=
 github.com/go-logfmt/logfmt v0.4.0/go.mod h1:3RMwSq7FuexP4Kalkev3ejPJsZTpXXBr9+V4qmtdjCk=
diff --git a/pkg/compose/build.go b/pkg/compose/build.go
index 3f6b7b38e..a9508e5af 100644
--- a/pkg/compose/build.go
+++ b/pkg/compose/build.go
@@ -263,7 +263,7 @@ func (s *composeService) build(ctx context.Context, project *types.Project, opti
 
 func (s *composeService) ensureImagesExists(ctx context.Context, project *types.Project, buildOpts *api.BuildOptions, quietPull bool) error {
 	for name, service := range project.Services {
-		if service.External == nil && service.Image == "" && service.Build == nil {
+		if service.Provider == nil && service.Image == "" && service.Build == nil {
 			return fmt.Errorf("invalid service %q. Must specify either image or build", name)
 		}
 	}
diff --git a/pkg/compose/convergence.go b/pkg/compose/convergence.go
index ee14e3cfa..99436ae57 100644
--- a/pkg/compose/convergence.go
+++ b/pkg/compose/convergence.go
@@ -110,7 +110,7 @@ func (c *convergence) apply(ctx context.Context, project *types.Project, options
 }
 
 func (c *convergence) ensureService(ctx context.Context, project *types.Project, service types.ServiceConfig, recreate string, inherit bool, timeout *time.Duration) error { //nolint:gocyclo
-	if service.External != nil {
+	if service.Provider != nil {
 		return c.service.runPlugin(ctx, project, service, "up")
 	}
 	expected, err := getScale(service)
diff --git a/pkg/compose/down.go b/pkg/compose/down.go
index 76945dd51..00580a50d 100644
--- a/pkg/compose/down.go
+++ b/pkg/compose/down.go
@@ -84,7 +84,7 @@ func (s *composeService) down(ctx context.Context, projectName string, options a
 
 	err = InReverseDependencyOrder(ctx, project, func(c context.Context, service string) error {
 		serv := project.Services[service]
-		if serv.External != nil {
+		if serv.Provider != nil {
 			return s.runPlugin(ctx, project, serv, "down")
 		}
 		serviceContainers := containers.filter(isService(service))
diff --git a/pkg/compose/plugins.go b/pkg/compose/plugins.go
index 92958af57..c4fdbd2e6 100644
--- a/pkg/compose/plugins.go
+++ b/pkg/compose/plugins.go
@@ -19,6 +19,7 @@ package compose
 import (
 	"context"
 	"encoding/json"
+	"errors"
 	"fmt"
 	"io"
 	"os"
@@ -30,7 +31,6 @@ import (
 	"github.com/docker/cli/cli-plugins/socket"
 	"github.com/docker/compose/v2/pkg/progress"
 	"github.com/docker/docker/errdefs"
-	"github.com/pkg/errors"
 	"github.com/spf13/cobra"
 	"go.opentelemetry.io/otel"
 	"go.opentelemetry.io/otel/propagation"
@@ -48,8 +48,8 @@ const (
 	SetEnvType = "setenv"
 )
 
-func (s *composeService) runPlugin(ctx context.Context, project *types.Project, service types.ServiceConfig, command string) error {
-	x := *service.External
+func (s *composeService) runPlugin(ctx context.Context, project *types.Project, service types.ServiceConfig, command string) error { //nolint:gocyclo
+	x := *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{})
@@ -97,7 +97,7 @@ func (s *composeService) runPlugin(ctx context.Context, project *types.Project,
 	eg.Go(cmd.Wait)
 
 	decoder := json.NewDecoder(stdout)
-	defer stdout.Close()
+	defer func() { _ = stdout.Close() }()
 
 	variables := types.Mapping{}
 
@@ -106,7 +106,7 @@ func (s *composeService) runPlugin(ctx context.Context, project *types.Project,
 	for {
 		var msg JsonMessage
 		err = decoder.Decode(&msg)
-		if err == io.EOF {
+		if errors.Is(err, io.EOF) {
 			break
 		}
 		if err != nil {
@@ -132,7 +132,7 @@ func (s *composeService) runPlugin(ctx context.Context, project *types.Project,
 	err = eg.Wait()
 	if err != nil {
 		pw.Event(progress.ErrorMessageEvent(service.Name, err.Error()))
-		return errors.Wrapf(err, "failed to create external service")
+		return fmt.Errorf("failed to create external service: %s", err.Error())
 	}
 	pw.Event(progress.CreatedEvent(service.Name))
 
diff --git a/pkg/compose/pull.go b/pkg/compose/pull.go
index 8ade6a5a5..e55a581d6 100644
--- a/pkg/compose/pull.go
+++ b/pkg/compose/pull.go
@@ -335,7 +335,7 @@ func (s *composeService) pullRequiredImages(ctx context.Context, project *types.
 }
 
 func mustPull(service types.ServiceConfig, images map[string]api.ImageSummary) (bool, error) {
-	if service.External != nil {
+	if service.Provider != nil {
 		return false, nil
 	}
 	if service.Image == "" {