diff --git a/tests/build/README.md b/tests/build/README.md
new file mode 100644
index 0000000..e67b421
--- /dev/null
+++ b/tests/build/README.md
@@ -0,0 +1,25 @@
+# Test podman-compose with build
+
+```
+podman-compose build
+podman-compose up -d
+curl http://localhost:8080/index.txt
+curl http://localhost:8000/index.txt
+podman inspect my-busybox-httpd2 
+podman-compose down
+```
+
+expected output would be something like
+
+```
+2019-09-03T15:16:38+0000
+ALT buildno=2 port 8000 2019-09-03T15:16:38+0000
+{
+...
+}
+```
+
+as you can see we were able to override buildno to be 2 instead of 1,
+and httpd_port to 8000.
+
+NOTE: build labels are not passed to `podman build`
diff --git a/tests/build/context/Dockerfile b/tests/build/context/Dockerfile
new file mode 100644
index 0000000..b49d3ae
--- /dev/null
+++ b/tests/build/context/Dockerfile
@@ -0,0 +1,3 @@
+FROM busybox
+RUN mkdir -p /var/www/html/ && date -Iseconds > /var/www/html/index.txt
+CMD ["busybox", "httpd", "-f", "-p", "80", "-h", "/var/www/html"]
diff --git a/tests/build/context/Dockerfile-alt b/tests/build/context/Dockerfile-alt
new file mode 100644
index 0000000..e0e71d7
--- /dev/null
+++ b/tests/build/context/Dockerfile-alt
@@ -0,0 +1,7 @@
+FROM busybox
+ARG buildno=1
+ARG httpd_port=80
+ENV httpd_port ${httpd_port}
+RUN mkdir -p /var/www/html/ && \
+    echo "ALT buildno=$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/docker-compose.yml b/tests/build/docker-compose.yml
new file mode 100644
index 0000000..6984b24
--- /dev/null
+++ b/tests/build/docker-compose.yml
@@ -0,0 +1,19 @@
+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