diff --git a/podman_compose.py b/podman_compose.py
index bafe828..383359f 100755
--- a/podman_compose.py
+++ b/podman_compose.py
@@ -1487,7 +1487,9 @@ class PodmanCompose:
         if compose_required:
             self._parse_compose_file()
         cmd = self.commands[cmd_name]
-        cmd(self, args)
+        retcode = cmd(self, args)
+        if isinstance(retcode, int):
+            sys.exit(retcode)
 
     def _parse_compose_file(self):
         args = self.global_args
@@ -2109,14 +2111,16 @@ def compose_build(compose, args):
             cnt = compose.container_by_name[container_names_by_service[service][0]]
             p = build_one(compose, args, cnt)
             status = parse_return_code(p, status)
+            if status != 0:
+                return status
     else:
         for cnt in compose.containers:
             p = build_one(compose, args, cnt)
             status = parse_return_code(p, status)
+            if status != 0:
+                return status
 
-    # When calling the "build" command, exit with the last non-Ok exit code found
-    if args.command == "build" or status != 0:
-        sys.exit(status)
+    return status
 
 
 def create_pods(compose, args):  # pylint: disable=unused-argument
diff --git a/tests/build_fail/README.md b/tests/build_fail/README.md
new file mode 100644
index 0000000..5d5b1ed
--- /dev/null
+++ b/tests/build_fail/README.md
@@ -0,0 +1,22 @@
+# Test podman-compose with build (fail scenario)
+
+```shell
+podman-compose build || echo $?
+```
+
+expected output would be something like
+
+```
+STEP 1/3: FROM busybox
+STEP 2/3: RUN this_command_does_not_exist
+/bin/sh: this_command_does_not_exist: not found
+Error: building at STEP "RUN this_command_does_not_exist": while running runtime: exit status 127
+
+exit code: 127
+```
+
+Expected `podman-compose` exit code:
+```shell
+echo $?
+127
+```
diff --git a/tests/build_fail/context/Dockerfile b/tests/build_fail/context/Dockerfile
new file mode 100644
index 0000000..6bab556
--- /dev/null
+++ b/tests/build_fail/context/Dockerfile
@@ -0,0 +1,3 @@
+FROM busybox
+RUN this_command_does_not_exist
+CMD ["sh"]
diff --git a/tests/build_fail/context/Dockerfile-alt b/tests/build_fail/context/Dockerfile-alt
new file mode 100644
index 0000000..75b5852
--- /dev/null
+++ b/tests/build_fail/context/Dockerfile-alt
@@ -0,0 +1,9 @@
+FROM busybox
+ARG buildno=1
+ARG httpd_port=80
+ARG other_variable=not_set
+ENV httpd_port ${httpd_port}
+ENV other_variable ${other_variable}
+RUN mkdir -p /var/www/html/ && \
+    echo "ALT buildno=$buildno port=$httpd_port `date -Iseconds`" > /var/www/html/index.txt
+CMD httpd -f -p "$httpd_port" -h /var/www/html
diff --git a/tests/build_fail/docker-compose.yml b/tests/build_fail/docker-compose.yml
new file mode 100644
index 0000000..a1116ad
--- /dev/null
+++ b/tests/build_fail/docker-compose.yml
@@ -0,0 +1,25 @@
+version: "3"
+services:
+    web1:
+      build: ./context
+      image: my-busybox-httpd
+      ports:
+      - 8080:80
+    web2:
+      build:
+        context: ./context
+        dockerfile: Dockerfile-alt
+        labels:
+            mykey: myval
+        args:
+            buildno: 2
+            httpd_port: 8000
+      image: my-busybox-httpd2
+      ports:
+      - 8000:8000
+    test_build_arg_argument:
+      build:
+        context: ./context
+        dockerfile: Dockerfile-alt
+      image: my-busybox-httpd2
+      command: env