diff --git a/podman_compose.py b/podman_compose.py
index 28408d9..d523924 100755
--- a/podman_compose.py
+++ b/podman_compose.py
@@ -2752,8 +2752,10 @@ def container_to_build_args(
     build_args = []
 
     if not is_path_git_url(ctx):
+        custom_dockerfile_given = False
         if dockerfile:
             dockerfile = os.path.join(ctx, dockerfile)
+            custom_dockerfile_given = True
         else:
             dockerfile_alts = [
                 "Containerfile",
@@ -2773,6 +2775,9 @@ def container_to_build_args(
             dockerfile = os.path.normpath(os.path.join(ctx, dockerfile))
             build_args.extend(["-f", dockerfile])
         else:
+            if custom_dockerfile_given:
+                # custom dockerfile name was also not found in the file system
+                raise OSError(f"Dockerfile not found in {dockerfile}")
             raise OSError(f"Dockerfile not found in {ctx}")
 
     build_args.extend(["-t", cnt["image"]])
diff --git a/tests/integration/build_fail/context_no_file/NotDockerfile b/tests/integration/build_fail/context_no_file/NotDockerfile
new file mode 100644
index 0000000..9daeafb
--- /dev/null
+++ b/tests/integration/build_fail/context_no_file/NotDockerfile
@@ -0,0 +1 @@
+test
diff --git a/tests/integration/build_fail/docker-compose.yml b/tests/integration/build_fail/docker-compose.yml
index 5641a64..818cba7 100644
--- a/tests/integration/build_fail/docker-compose.yml
+++ b/tests/integration/build_fail/docker-compose.yml
@@ -3,3 +3,12 @@ services:
     test:
       build: ./context
       image: build-fail-img
+    test_no_dockerfile:
+      build:
+        context: ./context_no_file
+      image: busybox
+    test_no_custom_dockerfile:
+      build:
+        context: ./context_no_file
+        dockerfile: Dockerfile-alt
+      image: busybox
diff --git a/tests/integration/build_fail/test_podman_compose_build_fail.py b/tests/integration/build_fail/test_podman_compose_build_fail.py
index 44dd920..010a673 100644
--- a/tests/integration/build_fail/test_podman_compose_build_fail.py
+++ b/tests/integration/build_fail/test_podman_compose_build_fail.py
@@ -22,9 +22,48 @@ class TestComposeBuildFail(unittest.TestCase, RunSubprocessMixin):
                 "-f",
                 compose_yaml_path(),
                 "build",
+                "test",
             ],
             expected_returncode=127,
         )
         self.assertIn("RUN this_command_does_not_exist", str(output))
         self.assertIn("this_command_does_not_exist: not found", str(error))
         self.assertIn("while running runtime: exit status 127", str(error))
+
+    def test_dockerfile_does_not_exist(self):
+        out, error = self.run_subprocess_assert_returncode(
+            [
+                podman_compose_path(),
+                "-f",
+                compose_yaml_path(),
+                "build",
+                "test_no_dockerfile",
+            ],
+            expected_returncode=1,
+        )
+        error = error.decode('utf-8')
+        result = '\n'.join(error.splitlines()[-1:])
+
+        expected_path = os.path.join(os.path.dirname(__file__), "context_no_file")
+        expected = f'OSError: Dockerfile not found in {expected_path}'
+
+        self.assertEqual(expected, result)
+
+    def test_custom_dockerfile_does_not_exist(self):
+        out, error = self.run_subprocess_assert_returncode(
+            [
+                podman_compose_path(),
+                "-f",
+                compose_yaml_path(),
+                "build",
+                "test_no_custom_dockerfile",
+            ],
+            expected_returncode=1,
+        )
+        error = error.decode('utf-8')
+        result = '\n'.join(error.splitlines()[-1:])
+
+        expected_path = os.path.join(os.path.dirname(__file__), "context_no_file/Dockerfile-alt")
+        expected = f'OSError: Dockerfile not found in {expected_path}'
+
+        self.assertEqual(expected, result)