diff --git a/README.md b/README.md
index c5dcb95..84f33d5 100644
--- a/README.md
+++ b/README.md
@@ -171,6 +171,7 @@ The following dependency file formats are supported:
 - `yarn.lock` (v1, v2)
 - `pnpm-lock.yaml` (v9)
 - `Dockerfile`
+- `docker-compose.yml`, `docker-compose.yaml`, `compose.yml`, `compose.yaml` (v1, v2, v3) 
 
 ### Check dependencies introduced through the CLI
 
diff --git a/src/twyn/base/constants.py b/src/twyn/base/constants.py
index b2f416f..ace9f74 100644
--- a/src/twyn/base/constants.py
+++ b/src/twyn/base/constants.py
@@ -33,6 +33,10 @@
     "pnpm-lock.yaml": dependency_parser.PnpmLockParser,
     "yarn.lock": dependency_parser.YarnLockParser,
     "Dockerfile": dependency_parser.DockerfileParser,
+    "docker-compose.yml": dependency_parser.DockerComposeParser,
+    "docker-compose.yaml": dependency_parser.DockerComposeParser,
+    "compose.yml": dependency_parser.DockerComposeParser,
+    "compose.yaml": dependency_parser.DockerComposeParser,
 }
 """Mapping of dependency file names to their parser classes."""
 
diff --git a/src/twyn/dependency_managers/managers.py b/src/twyn/dependency_managers/managers.py
index ed5eaf6..5f8b1d9 100644
--- a/src/twyn/dependency_managers/managers.py
+++ b/src/twyn/dependency_managers/managers.py
@@ -3,6 +3,10 @@
 
 from twyn.dependency_managers.exceptions import NoMatchingDependencyManagerError
 from twyn.dependency_parser.parsers.constants import (
+    COMPOSE_YAML,
+    COMPOSE_YML,
+    DOCKER_COMPOSE_YAML,
+    DOCKER_COMPOSE_YML,
     DOCKERFILE,
     PACKAGE_LOCK_JSON,
     PNPM_LOCK_YAML,
@@ -66,7 +70,7 @@ def get_alternative_source(self, sources: dict[str, str]) -> str | None:
 dockerhub_dependency_manager = DependencyManager(
     name="dockerhub",
     trusted_packages_source=TopDockerHubReference,
-    dependency_files={DOCKERFILE},
+    dependency_files={DOCKERFILE, DOCKER_COMPOSE_YML, DOCKER_COMPOSE_YAML, COMPOSE_YML, COMPOSE_YAML},
     trusted_packages_manager=TrustedDockerHubPackageManager,
 )
 
diff --git a/src/twyn/dependency_parser/__init__.py b/src/twyn/dependency_parser/__init__.py
index 837c8fa..b604523 100644
--- a/src/twyn/dependency_parser/__init__.py
+++ b/src/twyn/dependency_parser/__init__.py
@@ -1,5 +1,6 @@
 """Dependency parsers."""
 
+from twyn.dependency_parser.parsers.docker_compose_parser import DockerComposeParser
 from twyn.dependency_parser.parsers.dockerfile_parser import DockerfileParser
 from twyn.dependency_parser.parsers.lock_parser import PoetryLockParser, UvLockParser
 from twyn.dependency_parser.parsers.package_lock_json import PackageLockJsonParser
@@ -15,4 +16,5 @@
     "YarnLockParser",
     "PnpmLockParser",
     "DockerfileParser",
+    "DockerComposeParser",
 ]
diff --git a/src/twyn/dependency_parser/dependency_selector.py b/src/twyn/dependency_parser/dependency_selector.py
index fe12877..1c1c91f 100644
--- a/src/twyn/dependency_parser/dependency_selector.py
+++ b/src/twyn/dependency_parser/dependency_selector.py
@@ -42,10 +42,12 @@ def get_dependency_file_parsers_from_file_name(self) -> list[AbstractParser]:
         """Get parsers for dependency files based on their names."""
         parsers = []
         for dependency_file in self.dependency_files:
+            dependency_filename = Path(dependency_file).name
             for known_dependency_file_name in DEPENDENCY_FILE_MAPPING:
-                if dependency_file.endswith(known_dependency_file_name):
+                if dependency_filename == known_dependency_file_name:
                     file_parser = DEPENDENCY_FILE_MAPPING[known_dependency_file_name](dependency_file)
                     parsers.append(file_parser)
+                    break
         if not parsers:
             raise NoMatchingParserError
 
diff --git a/src/twyn/dependency_parser/parsers/constants.py b/src/twyn/dependency_parser/parsers/constants.py
index aa9c1f0..dcbad3b 100644
--- a/src/twyn/dependency_parser/parsers/constants.py
+++ b/src/twyn/dependency_parser/parsers/constants.py
@@ -18,3 +18,15 @@
 
 DOCKERFILE = "Dockerfile"
 """Filename for Docker container definition files."""
+
+DOCKER_COMPOSE_YML = "docker-compose.yml"
+"""Filename for Docker Compose configuration files."""
+
+DOCKER_COMPOSE_YAML = "docker-compose.yaml"
+"""Alternative filename for Docker Compose configuration files."""
+
+COMPOSE_YML = "compose.yml"
+"""Modern filename for Docker Compose configuration files."""
+
+COMPOSE_YAML = "compose.yaml"
+"""Modern alternative filename for Docker Compose configuration files."""
diff --git a/src/twyn/dependency_parser/parsers/docker_compose_parser.py b/src/twyn/dependency_parser/parsers/docker_compose_parser.py
new file mode 100644
index 0000000..86a4377
--- /dev/null
+++ b/src/twyn/dependency_parser/parsers/docker_compose_parser.py
@@ -0,0 +1,122 @@
+import logging
+import re
+
+import yaml
+from typing_extensions import override
+
+from twyn.dependency_parser.parsers.abstract_parser import AbstractParser
+from twyn.dependency_parser.parsers.constants import DOCKER_COMPOSE_YML
+
+logger = logging.getLogger("twyn")
+
+
+class DockerComposeParser(AbstractParser):
+    """Parser for docker-compose.yml dependencies (service images)."""
+
+    # Pattern for variable substitution in docker-compose
+    # Supports ${VAR}, ${VAR:-default}, ${VAR-default}, ${VAR:?error}
+    VARIABLE_PATTERN = re.compile(
+        r"\$\{(?P<name>[a-zA-Z_][a-zA-Z0-9_]*)(?::-(?P<default>[^}]+))?\}|\$(?P<short_name>[a-zA-Z_][a-zA-Z0-9_]*)"
+    )
+
+    def __init__(self, file_path: str = DOCKER_COMPOSE_YML) -> None:
+        super().__init__(file_path)
+
+    @override
+    def parse(self) -> set[str]:
+        """Parse docker-compose.yml and return image names from services.
+
+        Extracts images from service definitions and handles variable substitution.
+        """
+        with self.file_handler.open("r") as fp:
+            try:
+                compose_data = yaml.safe_load(fp)
+            except yaml.YAMLError as e:
+                logger.warning("Failed to parse docker-compose file: %s", e)
+                return set()
+
+        if not compose_data:
+            return set()
+
+        images: set[str] = set()
+
+        # Handle both docker-compose v2/v3 format (services at root)
+        # and older formats
+        services = compose_data.get("services", {})
+        if not services:
+            # Try legacy format where services are at root level
+            services = {k: v for k, v in compose_data.items() if isinstance(v, dict) and "image" in v}
+
+        for service_config in services.values():
+            if not isinstance(service_config, dict):
+                continue
+
+            image = service_config.get("image")
+            if image:
+                # Resolve any environment variables
+                resolved_image = self._resolve_variables(str(image))
+                # Extract image name without tag
+                image_name = self._extract_image_name(resolved_image)
+                if image_name and not self._has_unresolved_variables(image_name):
+                    images.add(image_name)
+
+        return images
+
+    def _resolve_variables(self, text: str) -> str:
+        """Resolve variable substitutions in text.
+
+        Note: Unlike Dockerfile, docker-compose variables come from the
+        environment, so we can only resolve those with default values.
+        """
+
+        def replace_var(match: re.Match[str]) -> str:
+            default = match.group("default") if match.group("name") else None
+
+            # Without access to actual env vars, return default if available
+            if default is not None:
+                return default
+
+            # Keep the variable reference if no default
+            return match.group(0)
+
+        return self.VARIABLE_PATTERN.sub(replace_var, text)
+
+    def _has_unresolved_variables(self, text: str) -> bool:
+        """Check if text still contains unresolved variable references."""
+        return bool(self.VARIABLE_PATTERN.search(text))
+
+    def _extract_image_name(self, image_with_tag: str) -> str:
+        """Extract image name without tag/version/digest from a Docker image reference.
+
+        Examples:
+            ubuntu:20.04 -> ubuntu
+            node:16-alpine -> node
+            registry.hub.docker.com/library/nginx:latest -> registry.hub.docker.com/library/nginx
+            localhost:5000/myapp:v1.0 -> localhost:5000/myapp
+            redis:7 -> redis
+            nginx@sha256:23q... -> nginx
+        """
+        # Strip off the digest FIRST
+        if "@" in image_with_tag:
+            image_with_tag = image_with_tag.split("@")[0]
+
+        # Find the last ':' in the string
+        last_colon_idx = image_with_tag.rfind(":")
+
+        if last_colon_idx == -1:
+            # No colon found, return as-is
+            return image_with_tag
+
+        potential_tag = image_with_tag[last_colon_idx + 1 :]
+        name_part = image_with_tag[:last_colon_idx]
+
+        # Check if this looks like a port number (registry:port/path pattern)
+        # A port is indicated by the pattern hostname:port/path where:
+        # - The part after colon is purely numeric (port)
+        # - There's a slash after the port (path to image)
+        if potential_tag.isdigit() and "/" in image_with_tag[last_colon_idx + 1 :]:
+            # This looks like a registry with port, don't strip it
+            return image_with_tag
+
+        # Otherwise, strip the tag
+        return name_part
diff --git a/tests/conftest.py b/tests/conftest.py
index 5559c8e..6146957 100644
--- a/tests/conftest.py
+++ b/tests/conftest.py
@@ -654,6 +654,54 @@ def package_lock_json_file_with_namespace_typo(tmp_path: Path) -> Iterator[Path]
         yield tmp_file
 
 
+@pytest.fixture
+def docker_compose_file(tmp_path: Path) -> Iterator[Path]:
+    """Docker compose file."""
+    docker_compose = tmp_path / "docker-compose.yml"
+    data = """version: '3.8'
+
+services:
+  web:
+    image: nginx:latest
+
+  api:
+    image: my-registry.io/backend/python:3.11-slim
+
+  custom:
+    image: ${CUSTOM_IMAGE:-default-image}:${VERSION:-latest}
+
+  with-digest:
+    image: alpine@sha256:123456789abcdef
+
+  build-only:
+    build:
+      context: ./app
+      dockerfile: Dockerfile
+
+  unresolved-var:
+    image: ${REGISTRY}/myapp:${TAG}
+
+  private-registry:
+    image: internal-registry.company.com:5000/team/service:v1.2.3
+"""
+    with create_tmp_file(docker_compose, data) as tmp_file:
+        yield tmp_file
+
+
+@pytest.fixture
+def docker_compose_file_legacy(tmp_path: Path) -> Iterator[Path]:
+    """Docker compose file in legacy v1 format."""
+    docker_compose = tmp_path / "docker-compose.yml"
+    data = """web:
+  image: nginx:latest
+
+db:
+  image: mysql:8
+"""
+    with create_tmp_file(docker_compose, data) as tmp_file:
+        yield tmp_file
+
+
 @pytest.fixture(autouse=True)
 def fail_on_requests_get(request) -> Generator[None, Any, None]:
     with mock.patch("requests.get") as m_get:
diff --git a/tests/dependency_parser/test_dependency_parser.py b/tests/dependency_parser/test_dependency_parser.py
index 3ae218c..5b723a4 100644
--- a/tests/dependency_parser/test_dependency_parser.py
+++ b/tests/dependency_parser/test_dependency_parser.py
@@ -3,6 +3,7 @@
 
 import pytest
 from twyn.dependency_parser import (
+    DockerComposeParser,
     PackageLockJsonParser,
     PnpmLockParser,
     PoetryLockParser,
@@ -167,3 +168,29 @@ def test_dockefile_parser(self, dockerfile: Path) -> None:
             "my-registry/nginx",
             "nginx",
         }
+
+
+class TestDockerComposeParser:
+    def test_docker_compose_parser(self, docker_compose_file: Path) -> None:
+        parser = DockerComposeParser(file_path=str(docker_compose_file))
+        result = parser.parse()
+
+        # Should find all services with explicit images
+        assert "nginx" in result
+        assert "my-registry.io/backend/python" in result
+        assert "default-image" in result  # Variable with default resolved
+        assert "alpine" in result  # Image with digest
+        assert "internal-registry.company.com:5000/team/service" in result
+
+        # Should NOT include services with only build context (no image)
+        # Should NOT include services with unresolved variables
+        assert len(result) == 5
+
+    def test_docker_compose_parser_legacy_format(self, docker_compose_file_legacy: Path) -> None:
+        parser = DockerComposeParser(file_path=str(docker_compose_file_legacy))
+        result = parser.parse()
+
+        # Should find services in v1 format (without services key)
+        assert "nginx" in result
+        assert "mysql" in result
+        assert len(result) == 2
diff --git a/tests/dependency_parser/test_dependency_selector.py b/tests/dependency_parser/test_dependency_selector.py
index c1ffc0b..e7be4ed 100644
--- a/tests/dependency_parser/test_dependency_selector.py
+++ b/tests/dependency_parser/test_dependency_selector.py
@@ -1,7 +1,13 @@
 from pathlib import Path
 
 import pytest
-from twyn.dependency_parser import PoetryLockParser, RequirementsTxtParser, UvLockParser
+from twyn.dependency_parser import (
+    DockerComposeParser,
+    DockerfileParser,
+    PoetryLockParser,
+    RequirementsTxtParser,
+    UvLockParser,
+)
 from twyn.dependency_parser.dependency_selector import DependencySelector
 from twyn.dependency_parser.exceptions import (
     NoMatchingParserError,
@@ -15,17 +21,16 @@ class TestDependencySelector:
     @pytest.mark.parametrize(
         ("file_name", "parser_class"),
         [
-            (
-                "requirements.txt",
-                RequirementsTxtParser,
-            ),  # because file is specified, we won't autocheck
+            ("requirements.txt", RequirementsTxtParser),
             ("poetry.lock", PoetryLockParser),
             ("uv.lock", UvLockParser),
-            ("/some/path/poetry.lock", PoetryLockParser),
-            ("/some/path/uv.lock", UvLockParser),
-            ("/some/path/requirements.txt", RequirementsTxtParser),
-            ("/some/path/yarn.lock", YarnLockParser),
-            ("/some/path/package-lock.json", PackageLockJsonParser),
+            ("yarn.lock", YarnLockParser),
+            ("package-lock.json", PackageLockJsonParser),
+            ("Dockerfile", DockerfileParser),
+            ("docker-compose.yml", DockerComposeParser),
+            ("docker-compose.yaml", DockerComposeParser),
+            ("compose.yml", DockerComposeParser),
+            ("compose.yaml", DockerComposeParser),
         ],
     )
     def test_get_dependency_parser(self, file_name: str, parser_class: type[AbstractParser]) -> None:
@@ -35,23 +40,10 @@ def test_get_dependency_parser(self, file_name: str, parser_class: type[Abstract
         assert isinstance(parser[0], parser_class)
         assert str(parser[0].file_handler.file_path).endswith(file_name)
 
-    def test_get_dependency_parser_auto_detect_requirements_file(
-        self, requirements_txt_file: Path, tmp_path: Path
-    ) -> None:
+    def test_get_dependency_parser_auto_detects_file(self, requirements_txt_file: Path, tmp_path: Path) -> None:
         parser = DependencySelector("", root_path=str(tmp_path)).get_dependency_parsers()
         assert isinstance(parser[0], RequirementsTxtParser)
 
-    def test_get_dependency_parser_auto_detect_poetry_lock_file(
-        self, poetry_lock_file_ge_1_5: Path, tmp_path: Path
-    ) -> None:
-        selector = DependencySelector("", root_path=str(tmp_path))
-        parser = selector.get_dependency_parsers()
-        assert isinstance(parser[0], PoetryLockParser)
-
-    def test_get_dependency_parser_auto_detect_uv_lock_file(self, uv_lock_file: Path, tmp_path: Path) -> None:
-        parser = DependencySelector("", root_path=str(tmp_path)).get_dependency_parsers()
-        assert isinstance(parser[0], UvLockParser)
-
     def test_auto_detect_dependency_file_parser_exceptions(self, tmp_path: Path) -> None:
         with pytest.raises(NoMatchingParserError):
             DependencySelector(root_path=str(tmp_path)).get_dependency_parsers()
@@ -59,7 +51,7 @@ def test_auto_detect_dependency_file_parser_exceptions(self, tmp_path: Path) ->
     @pytest.mark.parametrize("file_name", ["unknown.txt", ""])
     def test_get_dependency_file_parser_unknown_file_type(self, file_name: str) -> None:
         with pytest.raises(NoMatchingParserError):
-            DependencySelector(file_name).get_dependency_file_parsers_from_file_name()
+            DependencySelector({file_name}).get_dependency_parsers()
 
     def test_auto_detect_dependency_file_parser_scans_subdirectories(self, tmp_path: Path) -> None:
         # Create nested directories and dependency files