diff --git a/newsfragments/fix-up-no-recreate.bugfix b/newsfragments/fix-up-no-recreate.bugfix
new file mode 100644
index 0000000..ce44cf6
--- /dev/null
+++ b/newsfragments/fix-up-no-recreate.bugfix
@@ -0,0 +1 @@
+Implemented `up --no-recreate` to work as advertised
diff --git a/podman_compose.py b/podman_compose.py
index 2b33248..e9534b3 100755
--- a/podman_compose.py
+++ b/podman_compose.py
@@ -3099,6 +3099,8 @@ def deps_from_container(args: argparse.Namespace, cnt: dict) -> set:
 async def compose_up(compose: PodmanCompose, args: argparse.Namespace) -> int | None:
     excluded = get_excluded(compose, args)
 
+    log.info("building images: ...")
+
     if not args.no_build:
         # `podman build` does not cache, so don't always build
         build_args = argparse.Namespace(if_not_exists=(not args.build), **args.__dict__)
@@ -3108,8 +3110,11 @@ async def compose_up(compose: PodmanCompose, args: argparse.Namespace) -> int |
             if not args.dry_run:
                 return build_exit_code
 
-    hashes = (
-        (
+    # if needed, tear down existing containers
+
+    existing_containers: dict[str, str | None] = {
+        c['Names'][0]: c['Labels'].get('io.podman.compose.config-hash')
+        for c in json.loads(
             await compose.podman.output(
                 [],
                 "ps",
@@ -3118,44 +3123,73 @@ async def compose_up(compose: PodmanCompose, args: argparse.Namespace) -> int |
                     f"label=io.podman.compose.project={compose.project_name}",
                     "-a",
                     "--format",
-                    '{{ index .Labels "io.podman.compose.config-hash"}}',
+                    "json",
                 ],
             )
         )
-        .decode("utf-8")
-        .splitlines()
-    )
-    diff_hashes = [i for i in hashes if i and i != compose.yaml_hash]
-    if (args.force_recreate and len(hashes) > 0) or len(diff_hashes):
-        log.info("recreating: ...")
-        down_args = argparse.Namespace(**dict(args.__dict__, volumes=False, rmi=None))
-        await compose.commands["down"](compose, down_args)
-        log.info("recreating: done\n\n")
-    # args.no_recreate disables check for changes (which is not implemented)
+    }
 
-    await create_pods(compose)
-    exit_code = 0
-    for cnt in compose.containers:
-        if cnt["_service"] in excluded:
-            log.debug("** skipping: %s", cnt["name"])
-            continue
-        podman_args = await container_to_args(compose, cnt, detached=False, no_deps=args.no_deps)
-        subproc_exit_code = await compose.podman.run([], "create", podman_args)
-        if subproc_exit_code is not None and subproc_exit_code != 0:
-            exit_code = subproc_exit_code
+    if len(existing_containers) > 0:
+        if args.force_recreate and args.no_recreate:
+            log.error(
+                "Cannot use --force-recreate and --no-recreate at the same time, "
+                "please remove one of them"
+            )
+            return 1
 
-        if not args.no_start and args.detach and subproc_exit_code is not None:
-            container_exit_code = await run_container(
-                compose, cnt["name"], deps_from_container(args, cnt), ([], "start", [cnt["name"]])
+        if args.force_recreate:
+            teardown_needed = True
+        elif args.no_recreate:
+            teardown_needed = False
+        else:
+            # default is to tear down everything if any container is stale
+            teardown_needed = (
+                len([h for h in existing_containers.values() if h != compose.yaml_hash]) > 0
             )
 
-            if container_exit_code is not None and container_exit_code != 0:
-                exit_code = container_exit_code
+        if teardown_needed:
+            log.info("tearing down existing containers: ...")
+            down_args = argparse.Namespace(**dict(args.__dict__, volumes=False, rmi=None))
+            await compose.commands["down"](compose, down_args)
+            existing_containers = {}
+            log.info("tearing down existing containers: done\n\n")
+
+    await create_pods(compose)
+
+    log.info("creating missing containers: ...")
+
+    create_error_codes: list[int | None] = []
+    for cnt in compose.containers:
+        if cnt["_service"] in excluded or cnt["name"] in existing_containers:
+            log.debug("** skipping create: %s", cnt["name"])
+            continue
+        podman_args = await container_to_args(compose, cnt, detached=False, no_deps=args.no_deps)
+        exit_code = await compose.podman.run([], "create", podman_args)
+        create_error_codes.append(exit_code)
 
     if args.dry_run:
         return None
-    if args.no_start or args.detach:
-        return exit_code
+
+    if args.no_start:
+        # return first error code from create calls, if any
+        return next((code for code in create_error_codes if code is not None and code != 0), 0)
+
+    if args.detach:
+        log.info("starting containers (detached): ...")
+        start_error_codes: list[int | None] = []
+        for cnt in compose.containers:
+            if cnt["_service"] in excluded:
+                log.debug("** skipping start: %s", cnt["name"])
+                continue
+            exit_code = await run_container(
+                compose, cnt["name"], deps_from_container(args, cnt), ([], "start", [cnt["name"]])
+            )
+            start_error_codes.append(exit_code)
+
+        # return first error code from start calls, if any
+        return next((code for code in start_error_codes if code is not None and code != 0), 0)
+
+    log.info("starting containers (attached): ...")
 
     # TODO: handle already existing
     # TODO: if error creating do not enter loop
@@ -3393,6 +3427,7 @@ async def compose_run(compose: PodmanCompose, args: argparse.Namespace) -> None:
                 no_build=False,
                 build=None,
                 force_recreate=False,
+                no_recreate=False,
                 no_start=False,
                 no_cache=False,
                 build_arg=[],
diff --git a/tests/integration/no_recreate/__init__.py b/tests/integration/no_recreate/__init__.py
new file mode 100644
index 0000000..e69de29
diff --git a/tests/integration/no_recreate/compose1.yaml b/tests/integration/no_recreate/compose1.yaml
new file mode 100644
index 0000000..c193f96
--- /dev/null
+++ b/tests/integration/no_recreate/compose1.yaml
@@ -0,0 +1,4 @@
+services:
+  web:
+    image: busybox
+    command: ["/bin/busybox", "httpd", "-f", "-h", ".", "-p", "8004"]
diff --git a/tests/integration/no_recreate/compose2.yaml b/tests/integration/no_recreate/compose2.yaml
new file mode 100644
index 0000000..633191b
--- /dev/null
+++ b/tests/integration/no_recreate/compose2.yaml
@@ -0,0 +1,4 @@
+services:
+  web:
+    image: busybox
+    command: ["/bin/busybox", "httpd", "-f", "-h", ".", "-p", "8005"]
diff --git a/tests/integration/no_recreate/test_podman_compose_no_recreate.py b/tests/integration/no_recreate/test_podman_compose_no_recreate.py
new file mode 100644
index 0000000..4f3b896
--- /dev/null
+++ b/tests/integration/no_recreate/test_podman_compose_no_recreate.py
@@ -0,0 +1,75 @@
+# SPDX-License-Identifier: GPL-2.0
+
+import os
+import unittest
+
+from tests.integration.test_utils import RunSubprocessMixin
+from tests.integration.test_utils import podman_compose_path
+from tests.integration.test_utils import test_path
+
+
+def compose_yaml_path(version: str = '1') -> str:
+    return os.path.join(os.path.join(test_path(), "no_recreate"), f"compose{version}.yaml")
+
+
+class TestComposeNoRecreate(unittest.TestCase, RunSubprocessMixin):
+    def test_no_recreate(self) -> None:
+        def up(args: list[str] = [], version: str = '1') -> None:
+            self.run_subprocess_assert_returncode(
+                [
+                    podman_compose_path(),
+                    "-f",
+                    compose_yaml_path(version),
+                    "up",
+                    "-t",
+                    "0",
+                    "-d",
+                    *args,
+                ],
+            )
+
+        def get_container_id() -> bytes:
+            return self.run_subprocess_assert_returncode([
+                podman_compose_path(),
+                "-f",
+                compose_yaml_path(),
+                "ps",
+                "--format",
+                '{{.ID}}',
+            ])[0]
+
+        try:
+            up()
+
+            container_id = get_container_id()
+
+            self.assertGreater(len(container_id), 0)
+
+            # Default behavior - up with same compose file should not recreate the container
+            up()
+            self.assertEqual(get_container_id(), container_id)
+
+            # Default behavior - up with modified compose file should recreate the container
+            up(version='2')
+            self.assertNotEqual(get_container_id(), container_id)
+
+            container_id = get_container_id()
+
+            # Using --no-recreate should not recreate the container
+            # even if the compose file is modified
+            up(["--no-recreate"], version='1')
+            self.assertEqual(get_container_id(), container_id)
+
+            # Using --force-recreate should recreate the container
+            # even if the compose file is not modified
+            up(["--force-recreate"], version='1')
+            self.assertNotEqual(get_container_id(), container_id)
+        finally:
+            self.run_subprocess_assert_returncode([
+                podman_compose_path(),
+                "-f",
+                compose_yaml_path(),
+                "down",
+                "-t",
+                "0",
+            ])
diff --git a/tests/integration/service_scale/test_podman_compose_scale.py b/tests/integration/service_scale/test_podman_compose_scale.py
index 38b51c0..0b3fedb 100644
--- a/tests/integration/service_scale/test_podman_compose_scale.py
+++ b/tests/integration/service_scale/test_podman_compose_scale.py
@@ -110,11 +110,7 @@ class TestComposeScale(unittest.TestCase, RunSubprocessMixin):
                 "--scale",
                 "service1=4",
             ])
-            # error code 125 is expected as podman-compose complains about already used name
-            # "podman-compose_service1_1" for the 1st container
-            # Nevertheless, following containers are still created to scale as expected
-            # (in test case till 3 containers)
-            self.assertEqual(return_code, 125)
+            self.assertEqual(return_code, 0)
 
             output, _, return_code = self.run_subprocess([
                 podman_compose_path(),