diff --git a/pkg/compose/build.go b/pkg/compose/build.go
index eeb2dba2e6b..689a6cd8444 100644
--- a/pkg/compose/build.go
+++ b/pkg/compose/build.go
@@ -205,7 +205,7 @@ func (s *composeService) doBuild(ctx context.Context, project *types.Project, op
 		return nil, nil
 	}
 	if buildkitEnabled, err := s.dockerCli.BuildKitEnabled(); err != nil || !buildkitEnabled {
-		return s.doBuildClassic(ctx, opts)
+		return s.doBuildClassic(ctx, project, opts)
 	}
 	return s.doBuildBuildkit(ctx, project, opts, mode)
 }
diff --git a/pkg/compose/build_classic.go b/pkg/compose/build_classic.go
index 6b578dd7e90..302d55fa2eb 100644
--- a/pkg/compose/build_classic.go
+++ b/pkg/compose/build_classic.go
@@ -27,6 +27,7 @@ import (
 	"runtime"
 	"strings"
 
+	"github.com/compose-spec/compose-go/types"
 	buildx "github.com/docker/buildx/build"
 	"github.com/docker/cli/cli/command/image/build"
 	dockertypes "github.com/docker/docker/api/types"
@@ -41,15 +42,24 @@ import (
 	"github.com/pkg/errors"
 )
 
-func (s *composeService) doBuildClassic(ctx context.Context, opts map[string]buildx.Options) (map[string]string, error) {
+func (s *composeService) doBuildClassic(ctx context.Context, project *types.Project, opts map[string]buildx.Options) (map[string]string, error) {
 	var nameDigests = make(map[string]string)
 	var errs error
-	for name, o := range opts {
+	err := project.WithServices(nil, func(service types.ServiceConfig) error {
+		imageName := getImageName(service, project.Name)
+		o, ok := opts[imageName]
+		if !ok {
+			return nil
+		}
 		digest, err := s.doBuildClassicSimpleImage(ctx, o)
 		if err != nil {
 			errs = multierror.Append(errs, err).ErrorOrNil()
 		}
-		nameDigests[name] = digest
+		nameDigests[imageName] = digest
+		return nil
+	})
+	if err != nil {
+		return nil, err
 	}
 
 	return nameDigests, errs
diff --git a/pkg/e2e/compose_build_test.go b/pkg/e2e/build_test.go
similarity index 87%
rename from pkg/e2e/compose_build_test.go
rename to pkg/e2e/build_test.go
index 76a27f0321a..c7ea531bd30 100644
--- a/pkg/e2e/compose_build_test.go
+++ b/pkg/e2e/build_test.go
@@ -201,3 +201,40 @@ func TestBuildTags(t *testing.T) {
 		res.Assert(t, icmd.Expected{Out: expectedOutput})
 	})
 }
+
+func TestBuildImageDependencies(t *testing.T) {
+	doTest := func(t *testing.T, cli *CLI) {
+		resetState := func() {
+			cli.RunDockerComposeCmd(t, "down", "--rmi=all", "-t=0")
+		}
+		resetState()
+		t.Cleanup(resetState)
+
+		// the image should NOT exist now
+		res := cli.RunDockerOrExitError(t, "image", "inspect", "build-dependencies_service")
+		res.Assert(t, icmd.Expected{
+			ExitCode: 1,
+			Err:      "Error: No such image: build-dependencies_service",
+		})
+
+		res = cli.RunDockerComposeCmd(t, "build")
+		t.Log(res.Combined())
+
+		res = cli.RunDockerCmd(t,
+			"image", "inspect", "--format={{ index .RepoTags 0 }}",
+			"build-dependencies_service")
+		res.Assert(t, icmd.Expected{Out: "build-dependencies_service:latest"})
+	}
+
+	t.Run("ClassicBuilder", func(t *testing.T) {
+		cli := NewParallelCLI(t, WithEnv(
+			"DOCKER_BUILDKIT=0",
+			"COMPOSE_FILE=./fixtures/build-dependencies/compose.yaml",
+		))
+		doTest(t, cli)
+	})
+
+	t.Run("BuildKit", func(t *testing.T) {
+		t.Skip("See https://github.com/docker/compose/issues/9232")
+	})
+}
diff --git a/pkg/e2e/fixtures/build-dependencies/base.dockerfile b/pkg/e2e/fixtures/build-dependencies/base.dockerfile
new file mode 100644
index 00000000000..9dce0b74f41
--- /dev/null
+++ b/pkg/e2e/fixtures/build-dependencies/base.dockerfile
@@ -0,0 +1,19 @@
+#   Copyright 2020 Docker Compose CLI authors
+
+#   Licensed under the Apache License, Version 2.0 (the "License");
+#   you may not use this file except in compliance with the License.
+#   You may obtain a copy of the License at
+
+#       http://www.apache.org/licenses/LICENSE-2.0
+
+#   Unless required by applicable law or agreed to in writing, software
+#   distributed under the License is distributed on an "AS IS" BASIS,
+#   WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+#   See the License for the specific language governing permissions and
+#   limitations under the License.
+
+FROM alpine
+
+COPY hello.txt /hello.txt
+
+CMD [ "/bin/true" ]
diff --git a/pkg/e2e/fixtures/build-dependencies/compose.yaml b/pkg/e2e/fixtures/build-dependencies/compose.yaml
new file mode 100644
index 00000000000..7de1960b4e9
--- /dev/null
+++ b/pkg/e2e/fixtures/build-dependencies/compose.yaml
@@ -0,0 +1,12 @@
+services:
+  base:
+    image: base
+    build:
+      context: .
+      dockerfile: base.dockerfile
+  service:
+    depends_on:
+      - base
+    build:
+      context: .
+      dockerfile: service.dockerfile
diff --git a/pkg/e2e/fixtures/build-dependencies/hello.txt b/pkg/e2e/fixtures/build-dependencies/hello.txt
new file mode 100644
index 00000000000..810e7ba64ac
--- /dev/null
+++ b/pkg/e2e/fixtures/build-dependencies/hello.txt
@@ -0,0 +1 @@
+this file was copied from base -> service
diff --git a/pkg/e2e/fixtures/build-dependencies/service.dockerfile b/pkg/e2e/fixtures/build-dependencies/service.dockerfile
new file mode 100644
index 00000000000..95abc433d73
--- /dev/null
+++ b/pkg/e2e/fixtures/build-dependencies/service.dockerfile
@@ -0,0 +1,19 @@
+#   Copyright 2020 Docker Compose CLI authors
+
+#   Licensed under the Apache License, Version 2.0 (the "License");
+#   you may not use this file except in compliance with the License.
+#   You may obtain a copy of the License at
+
+#       http://www.apache.org/licenses/LICENSE-2.0
+
+#   Unless required by applicable law or agreed to in writing, software
+#   distributed under the License is distributed on an "AS IS" BASIS,
+#   WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+#   See the License for the specific language governing permissions and
+#   limitations under the License.
+
+FROM alpine
+
+COPY --from=base /hello.txt /hello.txt
+
+CMD [ "cat", "/hello.txt" ]