diff --git a/pkg/libstack/compose/internal/composeplugin/composeplugin.go b/pkg/libstack/compose/internal/composeplugin/composeplugin.go
index ca98426c0..26d09d4a8 100644
--- a/pkg/libstack/compose/internal/composeplugin/composeplugin.go
+++ b/pkg/libstack/compose/internal/composeplugin/composeplugin.go
@@ -126,6 +126,10 @@ func (wrapper *PluginWrapper) command(command composeCommand, options libstack.O
 		command.WithHost(options.Host)
 	}
 
+	if options.ProjectDir != "" {
+		command.WithProjectDirectory(options.ProjectDir)
+	}
+
 	var stderr bytes.Buffer
 
 	args := []string{}
@@ -237,6 +241,10 @@ func (command *composeCommand) WithEnvFilePath(envFilePath string) {
 	command.globalArgs = append(command.globalArgs, "--env-file", envFilePath)
 }
 
+func (command *composeCommand) WithProjectDirectory(projectDir string) {
+	command.globalArgs = append(command.globalArgs, "--project-directory", projectDir)
+}
+
 func (command *composeCommand) ToArgs() []string {
 	return append(command.globalArgs, command.subCommandAndArgs...)
 }
diff --git a/pkg/libstack/libstack.go b/pkg/libstack/libstack.go
index 9ff08012a..6d323cc87 100644
--- a/pkg/libstack/libstack.go
+++ b/pkg/libstack/libstack.go
@@ -35,6 +35,7 @@ type WaitResult struct {
 }
 
 type Options struct {
+	// WorkingDir is the working directory for the command execution
 	WorkingDir  string
 	Host        string
 	ProjectName string
@@ -42,6 +43,10 @@ type Options struct {
 	EnvFilePath string
 	// Env is a list of environment variables to pass to the command, example: "FOO=bar"
 	Env []string
+	// ProjectDir is the working directory for containers created by docker compose file.
+	// By default, it is an empty string, which means it corresponds to the path of the compose file itself.
+	// This is particularly helpful when mounting a relative path.
+	ProjectDir string
 }
 
 type DeployOptions struct {