diff --git a/tests/integration/test_podman_compose_extends.py b/tests/integration/test_podman_compose_extends.py
new file mode 100644
index 00000000..c6a730c1
--- /dev/null
+++ b/tests/integration/test_podman_compose_extends.py
@@ -0,0 +1,104 @@
+# SPDX-License-Identifier: GPL-2.0
+
+import os
+import unittest
+
+from tests.integration.test_podman_compose import podman_compose_path
+from tests.integration.test_podman_compose import test_path
+from tests.integration.test_utils import RunSubprocessMixin
+
+
+def compose_yaml_path():
+    return os.path.join(os.path.join(test_path(), "extends"), "docker-compose.yaml")
+
+
+class TestComposeExteds(unittest.TestCase, RunSubprocessMixin):
+    def test_extends_service_launch_echo(self):
+        try:
+            self.run_subprocess_assert_returncode([
+                podman_compose_path(),
+                "-f",
+                compose_yaml_path(),
+                "up",
+                "echo",
+            ])
+            output, _ = self.run_subprocess_assert_returncode([
+                podman_compose_path(),
+                "-f",
+                compose_yaml_path(),
+                "logs",
+                "echo",
+            ])
+            self.assertEqual(output, b"Zero\n")
+        finally:
+            self.run_subprocess_assert_returncode([
+                podman_compose_path(),
+                "-f",
+                compose_yaml_path(),
+                "down",
+            ])
+
+    def test_extends_service_launch_echo1(self):
+        try:
+            self.run_subprocess_assert_returncode([
+                podman_compose_path(),
+                "-f",
+                compose_yaml_path(),
+                "up",
+                "echo1",
+            ])
+            output, _ = self.run_subprocess_assert_returncode([
+                podman_compose_path(),
+                "-f",
+                compose_yaml_path(),
+                "logs",
+                "echo1",
+            ])
+            self.assertEqual(output, b"One\n")
+        finally:
+            self.run_subprocess_assert_returncode([
+                podman_compose_path(),
+                "-f",
+                compose_yaml_path(),
+                "down",
+            ])
+
+    def test_extends_service_launch_env1(self):
+        try:
+            self.run_subprocess_assert_returncode([
+                podman_compose_path(),
+                "-f",
+                compose_yaml_path(),
+                "up",
+                "env1",
+            ])
+            output, _ = self.run_subprocess_assert_returncode([
+                podman_compose_path(),
+                "-f",
+                compose_yaml_path(),
+                "logs",
+                "env1",
+            ])
+            lines = output.decode('utf-8').split('\n')
+            # HOSTNAME name is random string so is ignored in asserting
+            lines = sorted([line for line in lines if not line.startswith("HOSTNAME")])
+            self.assertEqual(
+                lines,
+                [
+                    '',
+                    'BAR=local',
+                    'BAZ=local',
+                    'FOO=original',
+                    'HOME=/root',
+                    'PATH=/usr/local/sbin:/usr/local/bin:/usr/sbin:/usr/bin:/sbin:/bin',
+                    'TERM=xterm',
+                    'container=podman',
+                ],
+            )
+        finally:
+            self.run_subprocess_assert_returncode([
+                podman_compose_path(),
+                "-f",
+                compose_yaml_path(),
+                "down",
+            ])