diff --git a/.github/ghadocs/examples/2_services.md b/.github/ghadocs/examples/2_services.md
index 21325f6..02e7113 100644
--- a/.github/ghadocs/examples/2_services.md
+++ b/.github/ghadocs/examples/2_services.md
@@ -1,7 +1,7 @@
 <!-- markdownlint-disable-next-line first-line-heading -->
 ### Example using `services`
 
-Perform `docker-compose up` to some given service instead of all of them
+Perform `docker compose up` to some given service instead of all of them
 
 ```yaml
 steps:
diff --git a/.github/ghadocs/examples/3_up-flags.md b/.github/ghadocs/examples/3_up-flags.md
index 07d2b47..013936c 100644
--- a/.github/ghadocs/examples/3_up-flags.md
+++ b/.github/ghadocs/examples/3_up-flags.md
@@ -1,7 +1,7 @@
 <!-- markdownlint-disable-next-line first-line-heading -->
 ### Example using `up-flags`
 
-Specify flags to pass to the `docker-compose up`. Default is none. Can be used
+Specify flags to pass to the `docker compose up`. Default is none. Can be used
 to pass the `--build` flag, for example, if you want persistent volumes to be
 deleted as well during cleanup. A full list of flags can be found in the
-[docker-compose up documentation](https://docs.docker.com/compose/reference/up/).
+[docker compose up documentation](https://docs.docker.com/compose/reference/up/).
diff --git a/.github/ghadocs/examples/5_compose-flags.md b/.github/ghadocs/examples/5_compose-flags.md
index 9ea49bf..e708d49 100644
--- a/.github/ghadocs/examples/5_compose-flags.md
+++ b/.github/ghadocs/examples/5_compose-flags.md
@@ -1,9 +1,9 @@
 <!-- markdownlint-disable-next-line first-line-heading -->
 ### Example using `compose-flags`
 
-Specify flags to pass to the `docker-compose` command. Default is none. A full
+Specify flags to pass to the `docker compose` command. Default is none. A full
 list of flags can be found in the
-[docker-compose documentation](https://docs.docker.com/compose/reference/#command-options-overview-and-help).
+[docker compose documentation](https://docs.docker.com/compose/reference/#command-options-overview-and-help).
 
 ```yaml
 steps:
diff --git a/.github/workflows/__check-action.yml b/.github/workflows/__check-action.yml
index a23c0d6..9085e1a 100644
--- a/.github/workflows/__check-action.yml
+++ b/.github/workflows/__check-action.yml
@@ -254,3 +254,20 @@ jobs:
             echo "Docker compose version is not in $DOCKER_COMPOSE_VERSION version"
             exit 1
           fi
+
+  test-action-with-docker-context:
+    runs-on: ubuntu-latest
+    name: Test with docker context
+    steps:
+      - uses: actions/checkout@v4
+
+      - name: Set up Docker
+        uses: docker/setup-docker-action@v4
+        with:
+          context: test-context
+
+      - name: Act
+        uses: ./
+        with:
+          compose-file: "./test/docker-compose.yml"
+          compose-version: "latest"
diff --git a/README.md b/README.md
index aaedc4b..8d01f1c 100644
--- a/README.md
+++ b/README.md
@@ -19,7 +19,7 @@
 </div>
 <!-- start description -->
 
-This action runs your docker-compose file and clean up before action finished
+This action runs your [docker compose](https://docs.docker.com/reference/compose-file/) file and clean up before action finished
 
 <!-- end description -->
 
@@ -30,16 +30,16 @@ This action runs your docker-compose file and clean up before action finished
 
 ### Action
 
-The action will run `docker-compose up` to start the services defined in the given compose file(s).
+The action will run `docker compose up` to start the services defined in the given compose file(s).
 The compose file(s) can be specified using the `compose-file` input.
-Some extra options can be passed to the `docker-compose up` command using the `up-flags` input.
+Some extra options can be passed to the `docker compose up` command using the `up-flags` input.
 
 ### Post hook
 
-On post hook, the action will run `docker-compose down` to clean up the services.
+On post hook, the action will run `docker compose down` to clean up the services.
 In [debug mode](https://docs.github.com/en/actions/monitoring-and-troubleshooting-workflows/troubleshooting-workflows/enabling-debug-logging), the logs of the running services are printed before the cleanup.
 
-Some extra options can be passed to the `docker-compose down` command using the `down-flags` input.
+Some extra options can be passed to the `docker compose down` command using the `down-flags` input.
 
 <!-- start usage -->
 
@@ -52,21 +52,21 @@ Some extra options can be passed to the `docker-compose down` command using the
     # Default: ./docker-compose.yml
     compose-file: ""
 
-    # Description: Services to perform docker-compose up.
+    # Description: Services to perform docker compose up.
     #
     services: ""
 
-    # Description: Additional options to pass to `docker-compose up` command.
+    # Description: Additional options to pass to `docker compose up` command.
     #
     # Default:
     up-flags: ""
 
-    # Description: Additional options to pass to `docker-compose down` command.
+    # Description: Additional options to pass to `docker compose down` command.
     #
     # Default:
     down-flags: ""
 
-    # Description: Additional options to pass to `docker-compose` command.
+    # Description: Additional options to pass to `docker compose` command.
     #
     # Default:
     compose-flags: ""
@@ -82,7 +82,7 @@ Some extra options can be passed to the `docker-compose down` command using the
     compose-version: ""
 
     # Description: The GitHub token used to create an authenticated client (to fetch
-    # the latest version of docker-compose).
+    # the latest version of docker compose).
     #
     # Default: ${{ github.token }}
     github-token: ""
@@ -97,13 +97,13 @@ Some extra options can be passed to the `docker-compose down` command using the
 | **Input**                    | **Description**                                                                                                                                  | **Default**                          | **Required** |
 | ---------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------ | ------------------------------------ | ------------ |
 | <code>compose-file</code>    | Path to compose file(s). It can be a list of files. It can be absolute or relative to the current working directory (cwd).                       | <code>./docker-compose.yml</code>    | **false**    |
-| <code>services</code>        | Services to perform docker-compose up.                                                                                                           |                                      | **false**    |
-| <code>up-flags</code>        | Additional options to pass to <code>docker-compose up</code> command.                                                                            |                                      | **false**    |
-| <code>down-flags</code>      | Additional options to pass to <code>docker-compose down</code> command.                                                                          |                                      | **false**    |
-| <code>compose-flags</code>   | Additional options to pass to <code>docker-compose</code> command.                                                                               |                                      | **false**    |
+| <code>services</code>        | Services to perform docker compose up.                                                                                                           |                                      | **false**    |
+| <code>up-flags</code>        | Additional options to pass to <code>docker compose up</code> command.                                                                            |                                      | **false**    |
+| <code>down-flags</code>      | Additional options to pass to <code>docker compose down</code> command.                                                                          |                                      | **false**    |
+| <code>compose-flags</code>   | Additional options to pass to <code>docker compose</code> command.                                                                               |                                      | **false**    |
 | <code>cwd</code>             | Current working directory                                                                                                                        | <code>${{ github.workspace }}</code> | **false**    |
 | <code>compose-version</code> | Compose version to use.<br />If null (default), it will use the current installed version.<br />If "latest", it will install the latest version. |                                      | **false**    |
-| <code>github-token</code>    | The GitHub token used to create an authenticated client (to fetch the latest version of docker-compose).                                         | <code>${{ github.token }}</code>     | **false**    |
+| <code>github-token</code>    | The GitHub token used to create an authenticated client (to fetch the latest version of docker compose).                                         | <code>${{ github.token }}</code>     | **false**    |
 
 <!-- end inputs -->
 <!-- start outputs -->
@@ -125,14 +125,14 @@ jobs:
     steps:
       - uses: actions/checkout@v4
 
-      - name: Run docker-compose
+      - name: Run docker compose
         uses: hoverkraft-tech/compose-action@v2.0.1
         with:
           compose-file: "./docker/docker-compose.yml"
 
       - name: Execute tests in the running services
         run: |
-          docker-compose exec test-app pytest
+          docker compose exec test-app pytest
 ```
 
 <!-- start [.github/ghadocs/examples/] -->
@@ -152,7 +152,7 @@ steps:
 
 ### Example using `services`
 
-Perform `docker-compose up` to some given service instead of all of them
+Perform `docker compose up` to some given service instead of all of them
 
 ```yaml
 steps:
@@ -168,24 +168,24 @@ steps:
 
 ### Example using `up-flags`
 
-Specify flags to pass to the `docker-compose up`. Default is none. Can be used
+Specify flags to pass to the `docker compose up`. Default is none. Can be used
 to pass the `--build` flag, for example, if you want persistent volumes to be
 deleted as well during cleanup. A full list of flags can be found in the
-[docker-compose up documentation](https://docs.docker.com/compose/reference/up/).
+[docker compose up documentation](https://docs.docker.com/compose/reference/up/).
 
 ### Example using `down-flags`
 
-Specify flags to pass to the `docker-compose down` command during cleanup.
+Specify flags to pass to the `docker compose down` command during cleanup.
 Default is none. Can be used to pass the `--volumes` flag, for example, if you
 want persistent volumes to be deleted as well during cleanup. A full list of
 flags can be found in the
-[docker-compose down documentation](https://docs.docker.com/compose/reference/down/).
+[docker compose down documentation](https://docs.docker.com/compose/reference/down/).
 
 ### Example using `compose-flags`
 
-Specify flags to pass to the `docker-compose` command. Default is none. A full
+Specify flags to pass to the `docker compose` command. Default is none. A full
 list of flags can be found in the
-[docker-compose documentation](https://docs.docker.com/compose/reference/#command-options-overview-and-help).
+[docker compose documentation](https://docs.docker.com/compose/reference/#command-options-overview-and-help).
 
 ```yaml
 steps:
diff --git a/action.yml b/action.yml
index dbd56ad..57a7a82 100644
--- a/action.yml
+++ b/action.yml
@@ -1,5 +1,5 @@
 name: "Docker Compose Action"
-description: "This action runs your docker-compose file and clean up before action finished"
+description: "This action runs your compose file and clean up before action finished"
 author: "Hoverkraft"
 branding:
   icon: anchor
@@ -11,18 +11,18 @@ inputs:
     required: false
     default: "./docker-compose.yml"
   services:
-    description: "Services to perform docker-compose up."
+    description: "Services to perform docker compose up."
     required: false
   up-flags:
-    description: "Additional options to pass to `docker-compose up` command."
+    description: "Additional options to pass to `docker compose up` command."
     required: false
     default: ""
   down-flags:
-    description: "Additional options to pass to `docker-compose down` command."
+    description: "Additional options to pass to `docker compose down` command."
     required: false
     default: ""
   compose-flags:
-    description: "Additional options to pass to `docker-compose` command."
+    description: "Additional options to pass to `docker compose` command."
     required: false
     default: ""
   cwd:
@@ -36,7 +36,7 @@ inputs:
       If "latest", it will install the latest version.
     required: false
   github-token:
-    description: The GitHub token used to create an authenticated client (to fetch the latest version of docker-compose).
+    description: The GitHub token used to create an authenticated client (to fetch the latest version of docker compose).
     default: ${{ github.token }}
     required: false