diff --git a/integration/dcbuild/Dockerfile b/integration/dcbuild/Dockerfile
index 31374f7718..4562ae9e36 100644
--- a/integration/dcbuild/Dockerfile
+++ b/integration/dcbuild/Dockerfile
@@ -1,6 +1,6 @@
-FROM golang:1.17-alpine
-RUN apk add curl
-WORKDIR /go/src/github.com/tilt-dev/integration/dcbuild/cmd/dcbuild
+FROM alpine
+RUN apk add busybox-extras curl
+WORKDIR /app
 ADD . .
-RUN go install github.com/tilt-dev/integration/dcbuild/cmd/dcbuild
-ENTRYPOINT /go/bin/dcbuild
+RUN ./compile.sh
+ENTRYPOINT ./start.sh ./main.sh
diff --git a/integration/dcbuild/Tiltfile b/integration/dcbuild/Tiltfile
index ecc07db746..6b472d4b68 100644
--- a/integration/dcbuild/Tiltfile
+++ b/integration/dcbuild/Tiltfile
@@ -1,4 +1,12 @@
 # -*- mode: Python -*-
 
 docker_compose('docker-compose.yaml')
-docker_build('gcr.io/windmill-test-containers/dcbuild', 'cmd/dcbuild', dockerfile='Dockerfile')
+
+docker_build('gcr.io/windmill-test-containers/dcbuild',
+             '.',
+             dockerfile='Dockerfile',
+             live_update=[
+               sync('.', '/app'),
+               run('/app/compile.sh'),
+               run('/app/restart.sh'),
+             ])
diff --git a/integration/dcbuild/cmd/dcbuild/go.mod b/integration/dcbuild/cmd/dcbuild/go.mod
deleted file mode 100644
index 641723f84b..0000000000
--- a/integration/dcbuild/cmd/dcbuild/go.mod
+++ /dev/null
@@ -1,3 +0,0 @@
-module github.com/tilt-dev/integration/dcbuild/cmd/dcbuild
-
-go 1.17
diff --git a/integration/dcbuild/cmd/dcbuild/main.go b/integration/dcbuild/cmd/dcbuild/main.go
deleted file mode 100644
index 26c2cd5945..0000000000
--- a/integration/dcbuild/cmd/dcbuild/main.go
+++ /dev/null
@@ -1,17 +0,0 @@
-package main
-
-import (
-	"log"
-	"net/http"
-)
-
-// One service deployed with docker-compose
-func main() {
-	http.HandleFunc("/", func(w http.ResponseWriter, r *http.Request) {
-		msg := "🍄 One-Up! 🍄"
-		_, _ = w.Write([]byte(msg))
-	})
-
-	log.Println("Serving onedc on 8000")
-	_ = http.ListenAndServe(":8000", nil)
-}
diff --git a/integration/dcbuild/compile.sh b/integration/dcbuild/compile.sh
new file mode 100755
index 0000000000..070ad50e29
--- /dev/null
+++ b/integration/dcbuild/compile.sh
@@ -0,0 +1,3 @@
+#!/bin/sh
+
+cat source.txt | sed "s/MESSAGE/🍄 One-Up! 🍄/" > compiled.txt
diff --git a/integration/dcbuild/main.sh b/integration/dcbuild/main.sh
new file mode 100755
index 0000000000..b80aa6e84a
--- /dev/null
+++ b/integration/dcbuild/main.sh
@@ -0,0 +1,6 @@
+#!/bin/sh
+
+set -ex
+
+cp compiled.txt index.html
+exec httpd -f -p 8000
diff --git a/integration/dcbuild/restart.sh b/integration/dcbuild/restart.sh
new file mode 100755
index 0000000000..1ca45f6121
--- /dev/null
+++ b/integration/dcbuild/restart.sh
@@ -0,0 +1,25 @@
+#!/bin/sh
+#
+# A helper script to restart a given process as part of a Live Update.
+#
+# Further reading:
+# https://docs.tilt.dev/live_update_reference.html#restarting-your-process
+#
+# Usage:
+#   Copy start.sh and restart.sh to your container working dir.
+#
+#   Make your container entrypoint:
+#   ./start.sh path-to-binary [args]
+#
+#   To restart the container:
+#   ./restart.sh
+
+set -u
+
+touch restart.txt
+PID="$(cat process.txt)"
+if [ $? -ne 0 ]; then
+  echo "unable to read process.txt. was your process started with start.sh?"
+  exit 1
+fi
+kill "$PID"
diff --git a/integration/dcbuild/source.txt b/integration/dcbuild/source.txt
new file mode 100644
index 0000000000..5c935299f0
--- /dev/null
+++ b/integration/dcbuild/source.txt
@@ -0,0 +1 @@
+MESSAGE
diff --git a/integration/dcbuild/start.sh b/integration/dcbuild/start.sh
new file mode 100755
index 0000000000..26c3084225
--- /dev/null
+++ b/integration/dcbuild/start.sh
@@ -0,0 +1,44 @@
+#!/bin/sh
+#
+# A helper script to restart a given process as part of a Live Update.
+#
+# Further reading:
+# https://docs.tilt.dev/live_update_reference.html#restarting-your-process
+#
+# Usage:
+#   Copy start.sh and restart.sh to your container working dir.
+#
+#   Make your container entrypoint:
+#   ./start.sh path-to-binary [args]
+#
+#   To restart the container:
+#   ./restart.sh
+
+set -eu
+
+process_id=""
+
+trap quit TERM INT
+
+quit() {
+  if [ -n "$process_id" ]; then
+    kill $process_id
+  fi
+}
+
+while true; do
+    rm -f restart.txt
+
+    "$@" &
+    process_id=$!
+    echo "$process_id" > process.txt
+    set +e
+    wait $process_id
+    EXIT_CODE=$?
+    set -e
+    if [ ! -f restart.txt ]; then
+        echo "Exiting with code $EXIT_CODE"
+        exit $EXIT_CODE
+    fi
+    echo "Restarting"
+done
diff --git a/integration/dcbuild_test.go b/integration/dcbuild_test.go
index 3925a9b4eb..72020d6b93 100644
--- a/integration/dcbuild_test.go
+++ b/integration/dcbuild_test.go
@@ -7,8 +7,12 @@ import (
 	"context"
 	"testing"
 	"time"
+
+	"github.com/stretchr/testify/assert"
+	"github.com/stretchr/testify/require"
 )
 
+// Ensures live-update works on tilt-handled image builds in dockercompose
 func TestDockerComposeImageBuild(t *testing.T) {
 	f := newDCFixture(t, "dcbuild")
 
@@ -24,11 +28,20 @@ func TestDockerComposeImageBuild(t *testing.T) {
 		})
 	}, "gcr.io/windmill-test-containers/dcbuild")
 
-	f.CurlUntil(ctx, "dcbuild", "localhost:8000", "🍄 One-Up! 🍄")
+	f.CurlUntil(ctx, "dcbuild", "localhost:8000/index.html", "🍄 One-Up! 🍄")
+
+	cID1, err := f.dockerContainerID("dcbuild")
+	require.NoError(t, err)
 
-	f.ReplaceContents("cmd/dcbuild/main.go", "One-Up", "Two-Up")
+	f.ReplaceContents("compile.sh", "One-Up", "Two-Up")
 
 	ctx, cancel = context.WithTimeout(f.ctx, time.Minute)
 	defer cancel()
-	f.CurlUntil(ctx, "dcbuild", "localhost:8000", "🍄 Two-Up! 🍄")
+	f.CurlUntil(ctx, "dcbuild", "localhost:8000/index.html", "🍄 Two-Up! 🍄")
+
+	cID2, err := f.dockerContainerID("dcbuild")
+	require.NoError(t, err)
+
+	// Make sure the container was updated in-place
+	assert.Equal(t, cID1, cID2)
 }
diff --git a/internal/engine/buildcontrol/build_control.go b/internal/engine/buildcontrol/build_control.go
index a8ec3813d4..6173d83ade 100644
--- a/internal/engine/buildcontrol/build_control.go
+++ b/internal/engine/buildcontrol/build_control.go
@@ -584,7 +584,8 @@ func IsLiveUpdateTargetWaitingOnDeploy(state store.EngineState, mt *store.Manife
 			}
 
 		} else if mt.Manifest.IsDC() {
-			cInfos := liveupdates.RunningContainersForDC(mt.State.DockerResource())
+			dcs := state.DockerComposeServices[mt.Manifest.Name.String()]
+			cInfos := liveupdates.RunningContainersForDC(dcs)
 			if len(cInfos) != 0 {
 				return false
 			}
diff --git a/internal/engine/buildcontrol/extractors.go b/internal/engine/buildcontrol/extractors.go
index b500db9a0e..efb2f6f51d 100644
--- a/internal/engine/buildcontrol/extractors.go
+++ b/internal/engine/buildcontrol/extractors.go
@@ -116,7 +116,7 @@ func extractImageTargetsForLiveUpdates(specs []model.TargetSpec, stateSet store.
 		containers, err := liveupdates.RunningContainers(
 			state.KubernetesSelector,
 			state.KubernetesResource,
-			state.DockerResource)
+			state.DockerComposeService)
 
 		if err != nil {
 			return nil, RedirectToNextBuilderInfof("Error retrieving container info: %v", err)
@@ -140,7 +140,7 @@ func extractImageTargetsForLiveUpdates(specs []model.TargetSpec, stateSet store.
 			filesChanged:      filesChanged,
 			containers:        containers,
 			hasFileChangesIDs: hasFileChangesIDs,
-			isDC:              state.DockerResource != nil,
+			isDC:              state.DockerComposeService != nil,
 		})
 	}
 
diff --git a/internal/engine/buildcontroller.go b/internal/engine/buildcontroller.go
index 5bc8589321..5ff28d33f6 100644
--- a/internal/engine/buildcontroller.go
+++ b/internal/engine/buildcontroller.go
@@ -15,7 +15,6 @@ import (
 	"github.com/tilt-dev/tilt/internal/engine/buildcontrol"
 	"github.com/tilt-dev/tilt/internal/store"
 	"github.com/tilt-dev/tilt/internal/store/buildcontrols"
-	"github.com/tilt-dev/tilt/internal/store/dcconv"
 	"github.com/tilt-dev/tilt/internal/store/k8sconv"
 	"github.com/tilt-dev/tilt/pkg/apis/core/v1alpha1"
 	"github.com/tilt-dev/tilt/pkg/model"
@@ -81,6 +80,7 @@ func (c *BuildController) needsBuild(ctx context.Context, st store.RStore) (buil
 	buildReason := mt.NextBuildReason()
 	targets := buildcontrol.BuildTargets(manifest)
 	buildStateSet := buildStateSet(ctx, manifest, state.KubernetesResources[manifest.Name.String()],
+		state.DockerComposeServices[manifest.Name.String()],
 		targets, ms, buildReason)
 
 	return buildEntry{
@@ -202,7 +202,9 @@ func SpanIDForBuildLog(buildCount int) logstore.SpanID {
 
 // Extract a set of build states from a manifest for BuildAndDeploy.
 func buildStateSet(ctx context.Context, manifest model.Manifest,
-	kresource *k8sconv.KubernetesResource, specs []model.TargetSpec,
+	kresource *k8sconv.KubernetesResource,
+	dcs *v1alpha1.DockerComposeService,
+	specs []model.TargetSpec,
 	ms *store.ManifestState, reason model.BuildReason) store.BuildStateSet {
 	result := store.BuildStateSet{}
 
@@ -241,7 +243,7 @@ func buildStateSet(ctx context.Context, manifest model.Manifest,
 				}
 
 				if manifest.IsDC() {
-					buildState.DockerResource = &dcconv.DockerResource{ContainerID: string(ms.DCRuntimeState().ContainerID)}
+					buildState.DockerComposeService = dcs
 				}
 			}
 		}
diff --git a/internal/engine/buildcontroller_test.go b/internal/engine/buildcontroller_test.go
index ffa8a6e0dc..78273d30b4 100644
--- a/internal/engine/buildcontroller_test.go
+++ b/internal/engine/buildcontroller_test.go
@@ -201,7 +201,7 @@ func TestBuildControllerDockerCompose(t *testing.T) {
 	call = f.nextCall()
 	s := call.state[imageTarget.ID()]
 	containers, err := liveupdates.RunningContainers(
-		nil, nil, s.DockerResource)
+		nil, nil, s.DockerComposeService)
 	require.NoError(t, err)
 	assert.Equal(t, "dc-sancho", containers[0].ContainerID.String())
 
diff --git a/internal/engine/testdata_test.go b/internal/engine/testdata_test.go
index 197fa0fc1a..bf64c4975c 100644
--- a/internal/engine/testdata_test.go
+++ b/internal/engine/testdata_test.go
@@ -56,6 +56,7 @@ func NewSanchoLiveUpdateDCManifest(f Fixture) model.Manifest {
 	return manifestbuilder.New(f, "sancho").
 		WithDockerCompose().
 		WithImageTarget(NewSanchoLiveUpdateImageTarget(f)).
+		WithLiveUpdateBAD().
 		Build()
 }
 
diff --git a/internal/engine/upper_test.go b/internal/engine/upper_test.go
index cdc97fe028..ffa043ad4a 100644
--- a/internal/engine/upper_test.go
+++ b/internal/engine/upper_test.go
@@ -252,7 +252,8 @@ type fakeBuildAndDeployer struct {
 	resultsByID store.BuildResultSet
 
 	// kClient registers deployed entities for subsequent retrieval.
-	kClient *k8s.FakeK8sClient
+	kClient  *k8s.FakeK8sClient
+	dcClient *dockercompose.FakeDCClient
 
 	ctrlClient ctrlclient.Client
 
@@ -358,15 +359,16 @@ func (b *fakeBuildAndDeployer) BuildAndDeploy(ctx context.Context, st store.RSto
 	}
 
 	if !call.dc().Empty() && len(b.nextLiveUpdateContainerIDs) == 0 {
-		err = b.updateDockerComposeServiceStatus(ctx, call.dc(), iTargets)
-		if err != nil {
-			return result, err
-		}
-
 		dcContainerID := container.ID(fmt.Sprintf("dc-%s", path.Base(call.dc().ID().Name.String())))
 		if b.nextDockerComposeContainerID != "" {
 			dcContainerID = b.nextDockerComposeContainerID
 		}
+		b.dcClient.ContainerIdOutput = dcContainerID
+
+		err = b.updateDockerComposeServiceStatus(ctx, call.dc(), iTargets)
+		if err != nil {
+			return result, err
+		}
 
 		dcContainerState := b.nextDockerComposeContainerState
 		result[call.dc().ID()] = store.NewDockerComposeDeployResult(
@@ -545,13 +547,14 @@ func (b *fakeBuildAndDeployer) waitUntilBuildCompleted(ctx context.Context, key
 	}
 }
 
-func newFakeBuildAndDeployer(t *testing.T, kClient *k8s.FakeK8sClient, ctrlClient ctrlclient.Client, kaReconciler *kubernetesapply.Reconciler, dcReconciler *dockercomposeservice.Reconciler) *fakeBuildAndDeployer {
+func newFakeBuildAndDeployer(t *testing.T, kClient *k8s.FakeK8sClient, dcClient *dockercompose.FakeDCClient, ctrlClient ctrlclient.Client, kaReconciler *kubernetesapply.Reconciler, dcReconciler *dockercomposeservice.Reconciler) *fakeBuildAndDeployer {
 	return &fakeBuildAndDeployer{
 		t:                t,
 		calls:            make(chan buildAndDeployCall, 20),
 		buildLogOutput:   make(map[model.TargetID]string),
 		resultsByID:      store.BuildResultSet{},
 		kClient:          kClient,
+		dcClient:         dcClient,
 		ctrlClient:       ctrlClient,
 		kaReconciler:     kaReconciler,
 		dcReconciler:     dcReconciler,
@@ -3563,7 +3566,7 @@ func newTestFixture(t *testing.T, options ...fixtureOptions) *testFixture {
 	dp := dockerprune.NewDockerPruner(dockerClient)
 	dp.DisabledForTesting(true)
 
-	b := newFakeBuildAndDeployer(t, kClient, cdc, kar, dcr)
+	b := newFakeBuildAndDeployer(t, kClient, fakeDcc, cdc, kar, dcr)
 	bc := NewBuildController(b)
 
 	ret := &testFixture{
diff --git a/internal/store/build_result.go b/internal/store/build_result.go
index 8e16379539..1aaa7b52b1 100644
--- a/internal/store/build_result.go
+++ b/internal/store/build_result.go
@@ -6,7 +6,6 @@ import (
 	"github.com/docker/distribution/reference"
 
 	"github.com/tilt-dev/tilt/internal/container"
-	"github.com/tilt-dev/tilt/internal/store/dcconv"
 	"github.com/tilt-dev/tilt/internal/store/k8sconv"
 	"github.com/tilt-dev/tilt/pkg/apis/core/v1alpha1"
 	"github.com/tilt-dev/tilt/pkg/model"
@@ -274,7 +273,7 @@ type BuildState struct {
 
 	KubernetesResource *k8sconv.KubernetesResource
 
-	DockerResource *dcconv.DockerResource
+	DockerComposeService *v1alpha1.DockerComposeService
 }
 
 func NewBuildState(result BuildResult, files []string, pendingDeps []model.TargetID) BuildState {
diff --git a/internal/store/dcconv/resource.go b/internal/store/dcconv/resource.go
deleted file mode 100644
index 8f1f5bc14a..0000000000
--- a/internal/store/dcconv/resource.go
+++ /dev/null
@@ -1,9 +0,0 @@
-package dcconv
-
-// A DockerResource exposes a high-level status that summarizes
-// the containers we care about in a DockerCompose session.
-//
-// Long-term, this may become an explicit API server object.
-type DockerResource struct {
-	ContainerID string
-}
diff --git a/internal/store/engine_state.go b/internal/store/engine_state.go
index 92951749df..c79f11904c 100644
--- a/internal/store/engine_state.go
+++ b/internal/store/engine_state.go
@@ -11,7 +11,6 @@ import (
 	"github.com/tilt-dev/tilt/internal/container"
 	"github.com/tilt-dev/tilt/internal/dockercompose"
 	"github.com/tilt-dev/tilt/internal/k8s"
-	"github.com/tilt-dev/tilt/internal/store/dcconv"
 	"github.com/tilt-dev/tilt/internal/store/k8sconv"
 	"github.com/tilt-dev/tilt/internal/timecmp"
 	"github.com/tilt-dev/tilt/internal/token"
@@ -600,14 +599,6 @@ func (ms *ManifestState) DCRuntimeState() dockercompose.State {
 	return ret
 }
 
-func (ms *ManifestState) DockerResource() *dcconv.DockerResource {
-	ret, ok := ms.RuntimeState.(dockercompose.State)
-	if !ok {
-		return nil
-	}
-	return &dcconv.DockerResource{ContainerID: string(ret.ContainerID)}
-}
-
 func (ms *ManifestState) IsDC() bool {
 	_, ok := ms.RuntimeState.(dockercompose.State)
 	return ok
diff --git a/internal/store/liveupdates/containers.go b/internal/store/liveupdates/containers.go
index 42dc223a90..28ef96fc18 100644
--- a/internal/store/liveupdates/containers.go
+++ b/internal/store/liveupdates/containers.go
@@ -9,14 +9,13 @@ import (
 	"github.com/tilt-dev/tilt/internal/container"
 	"github.com/tilt-dev/tilt/internal/k8s"
 	"github.com/tilt-dev/tilt/internal/store"
-	"github.com/tilt-dev/tilt/internal/store/dcconv"
 	"github.com/tilt-dev/tilt/internal/store/k8sconv"
 	"github.com/tilt-dev/tilt/pkg/apis/core/v1alpha1"
 )
 
 func AllRunningContainers(mt *store.ManifestTarget, state *store.EngineState) []Container {
 	if mt.Manifest.IsDC() {
-		return RunningContainersForDC(mt.State.DockerResource())
+		return RunningContainersForDC(state.DockerComposeServices[mt.Manifest.Name.String()])
 	}
 
 	var result []Container
@@ -38,12 +37,12 @@ func AllRunningContainers(mt *store.ManifestTarget, state *store.EngineState) []
 	return result
 }
 
-func RunningContainers(selector *v1alpha1.LiveUpdateKubernetesSelector, k8sResource *k8sconv.KubernetesResource, dResource *dcconv.DockerResource) ([]Container, error) {
+func RunningContainers(selector *v1alpha1.LiveUpdateKubernetesSelector, k8sResource *k8sconv.KubernetesResource, dcs *v1alpha1.DockerComposeService) ([]Container, error) {
 	if selector != nil && k8sResource != nil {
 		return RunningContainersForOnePod(selector, k8sResource)
 	}
-	if dResource != nil {
-		return RunningContainersForDC(dResource), nil
+	if dcs != nil {
+		return RunningContainersForDC(dcs), nil
 	}
 	return nil, nil
 }
@@ -98,12 +97,12 @@ func RunningContainersForOnePod(selector *v1alpha1.LiveUpdateKubernetesSelector,
 	return containers, nil
 }
 
-func RunningContainersForDC(dr *dcconv.DockerResource) []Container {
-	if dr == nil || dr.ContainerID == "" {
+func RunningContainersForDC(dcs *v1alpha1.DockerComposeService) []Container {
+	if dcs == nil || dcs.Status.ContainerID == "" {
 		return nil
 	}
 	return []Container{
-		Container{ContainerID: container.ID(dr.ContainerID)},
+		Container{ContainerID: container.ID(dcs.Status.ContainerID)},
 	}
 }
 
diff --git a/internal/store/liveupdates/fake.go b/internal/store/liveupdates/fake.go
index d1ac9b5be0..3e5206b427 100644
--- a/internal/store/liveupdates/fake.go
+++ b/internal/store/liveupdates/fake.go
@@ -4,7 +4,6 @@ import (
 	"sort"
 
 	"github.com/tilt-dev/tilt/internal/store"
-	"github.com/tilt-dev/tilt/internal/store/dcconv"
 	"github.com/tilt-dev/tilt/internal/store/k8sconv"
 	"github.com/tilt-dev/tilt/pkg/apis/core/v1alpha1"
 )
@@ -16,7 +15,11 @@ func WithFakeK8sContainers(s store.BuildState, imageName string, containers []Co
 }
 
 func WithFakeDCContainer(s store.BuildState, container Container) store.BuildState {
-	s.DockerResource = &dcconv.DockerResource{ContainerID: string(container.ContainerID)}
+	s.DockerComposeService = &v1alpha1.DockerComposeService{
+		Status: v1alpha1.DockerComposeServiceStatus{
+			ContainerID: string(container.ContainerID),
+		},
+	}
 	return s
 }
 
diff --git a/internal/testutils/manifestbuilder/manifestbuilder.go b/internal/testutils/manifestbuilder/manifestbuilder.go
index d96a6949f8..33d6266ca6 100644
--- a/internal/testutils/manifestbuilder/manifestbuilder.go
+++ b/internal/testutils/manifestbuilder/manifestbuilder.go
@@ -169,9 +169,6 @@ func (b ManifestBuilder) Build() model.Manifest {
 			iTarget.LiveUpdateReconciler = false
 		} else if b.useLiveUpdateBAD {
 			iTarget.LiveUpdateReconciler = false
-		} else if len(b.dcConfigPaths) > 0 {
-			// Docker Compose must use the buildAndDeployer
-			iTarget.LiveUpdateReconciler = false
 		} else {
 			iTarget.LiveUpdateReconciler = true
 		}
diff --git a/internal/tiltfile/docker_compose.go b/internal/tiltfile/docker_compose.go
index 52f5b79896..77fb340f75 100644
--- a/internal/tiltfile/docker_compose.go
+++ b/internal/tiltfile/docker_compose.go
@@ -22,7 +22,9 @@ import (
 	"go.starlark.net/starlark"
 
 	"github.com/tilt-dev/tilt/internal/container"
+	"github.com/tilt-dev/tilt/internal/controllers/apis/liveupdate"
 	"github.com/tilt-dev/tilt/internal/dockercompose"
+	"github.com/tilt-dev/tilt/internal/feature"
 	"github.com/tilt-dev/tilt/internal/tiltfile/io"
 	"github.com/tilt-dev/tilt/internal/tiltfile/links"
 	"github.com/tilt-dev/tilt/internal/tiltfile/starkit"
@@ -399,6 +401,16 @@ func (s *tiltfileState) dcServiceToManifest(service *dcService, dcSet dcResource
 		mds = append(mds, model.ManifestName(md))
 	}
 
+	if s.features.Get(feature.LiveUpdateV2) {
+		for i, iTarget := range iTargets {
+			if liveupdate.IsEmptySpec(iTarget.LiveUpdateSpec) {
+				continue
+			}
+			iTarget.LiveUpdateReconciler = true
+			iTargets[i] = iTarget
+		}
+	}
+
 	m := model.Manifest{
 		Name:                 model.ManifestName(service.Name),
 		TriggerMode:          um,
diff --git a/internal/tiltfile/tiltfile_state.go b/internal/tiltfile/tiltfile_state.go
index 51f0dc7bbb..1a172e13d1 100644
--- a/internal/tiltfile/tiltfile_state.go
+++ b/internal/tiltfile/tiltfile_state.go
@@ -1127,8 +1127,6 @@ func (s *tiltfileState) translateK8s(resources []*k8sResource, updateSettings mo
 			return nil, errors.Wrapf(err, "getting image build info for %s", r.name)
 		}
 
-		// Currently, only Kubernetes ImageTargets support the reconciler,
-		// and only if the user has flagged it on.
 		if s.features.Get(feature.LiveUpdateV2) {
 			for i, iTarget := range iTargets {
 				if liveupdate.IsEmptySpec(iTarget.LiveUpdateSpec) {
diff --git a/pkg/model/manifest.go b/pkg/model/manifest.go
index da86706388..1b4b5cd246 100644
--- a/pkg/model/manifest.go
+++ b/pkg/model/manifest.go
@@ -284,7 +284,6 @@ func (m *Manifest) InferLiveUpdateSelectors() error {
 			continue
 		}
 
-		// TODO(nick): Also set docker-compose selectors once the model supports it.
 		if m.IsK8s() {
 			kSelector := luSpec.Selector.Kubernetes
 			if kSelector == nil {
@@ -312,6 +311,18 @@ func (m *Manifest) InferLiveUpdateSelectors() error {
 			}
 		}
 
+		if m.IsDC() {
+			dcSelector := luSpec.Selector.DockerCompose
+			if dcSelector == nil {
+				dcSelector = &v1alpha1.LiveUpdateDockerComposeSelector{}
+				luSpec.Selector.DockerCompose = dcSelector
+			}
+
+			if dcSelector.Service == "" {
+				dcSelector.Service = m.Name.String()
+			}
+		}
+
 		luSpec.Sources = nil
 		err := dag.VisitTree(iTarget, func(dep TargetSpec) error {
 			// Relies on the idea that ImageTargets creates