diff --git a/compose.js b/compose.js
index fad4d1d..74334ce 100644
--- a/compose.js
+++ b/compose.js
@@ -1,5 +1,4 @@
-const yaml = require('js-yaml');
-const fs = require('fs');
+const { readYamlEnvSync } = require('yaml-env-defaults');
 const stream = require('stream');
 
 const secrets = require('./lib/secrets');
@@ -10,7 +9,7 @@ const services = require('./lib/services');
 const tools = require('./lib/tools');
 
 class Compose {
-  constructor(dockerode, file, projectName) {
+  constructor(dockerode, file, projectName, customEnv = undefined) {
     this.docker = dockerode;
 
     if (file === undefined || projectName === undefined) {
@@ -19,9 +18,10 @@ class Compose {
 
     this.file = file;
     this.projectName = projectName;
+    this.loadYaml = (path) => readYamlEnvSync(path, customEnv);
 
     try {
-      this.recipe = yaml.load(fs.readFileSync(file, 'utf8'));
+      this.recipe = this.loadYaml(file);
     } catch (e) {
       throw e;
     }
@@ -52,7 +52,7 @@ class Compose {
       output.volumes = await volumes.up(this.docker, this.projectName, this.recipe, output);
       output.configs = await configs(this.docker, this.projectName, this.recipe, output);
       output.networks = await networks.up(this.docker, this.projectName, this.recipe, output);
-      output.services = await services.up(this.docker, this.projectName, this.recipe, output, options);
+      output.services = await services.up(this.docker, this.projectName, this.recipe, output, options, this.loadYaml);
       return output;
     } catch (e) {
       throw e;
diff --git a/lib/services.js b/lib/services.js
index 42d3cdf..2a46358 100644
--- a/lib/services.js
+++ b/lib/services.js
@@ -1,7 +1,6 @@
 const tools = require('./tools');
 const servicesTools = require('./servicesTools');
 const fs = require('fs');
-const yaml = require('js-yaml');
 const path = require('path');
 
 async function down(docker, projectName, recipe, output, options) {
@@ -21,7 +20,7 @@ async function down(docker, projectName, recipe, output, options) {
   return services;
 }
 
-async function up(docker, projectName, recipe, output, options) {
+async function up(docker, projectName, recipe, output, options, loadYaml) {
   var services = [];
   var serviceNames = tools.sortServices(recipe);
   const cwdPath = path.dirname(output.file);
@@ -32,7 +31,7 @@ async function up(docker, projectName, recipe, output, options) {
     var service = recipe.services[serviceName];
     if (service.extends !== undefined) {
       if (service.extends.service !== undefined) {
-        service = extendsServices(service, recipe, pathScope);
+        service = extendsServices(service, recipe, pathScope, loadYaml);
       } else {
         throw new Error('Service key in extends is required!');
       }
@@ -341,7 +340,7 @@ var convertFancyDurationToMs = function (value) {
 };
 
 // https://github.com/compose-spec/compose-spec/blob/master/spec.md#extends
-var extendsServices = function (service, recipe, pathScope) {
+var extendsServices = function (service, recipe, pathScope, loadYaml) {
   // https://github.com/compose-spec/compose-spec/blob/master/spec.md#finding-referenced-service
   if (service.extends.file === undefined) {
     // EXTENDS OF THE SAME RECIPE
@@ -349,22 +348,19 @@ var extendsServices = function (service, recipe, pathScope) {
       service,
       service.extends.service,
       recipe,
-      pathScope
+      pathScope,
+      loadYaml
     );
   } else {
     // EXTENDS OF ANOTHER RECIPE
     var absolutePath = path.dirname(pathScope.file);
-    var extendsRecipe = yaml.load(
-      fs.readFileSync(
-        path.resolve(path.join(absolutePath, service.extends.file)),
-        'utf8'
-      )
-    );
+    var extendsRecipe = loadYaml(path.resolve(path.join(absolutePath, service.extends.file)));
     return buildExtendsService(
       service,
       service.extends.service,
       extendsRecipe,
-      pathScope
+      pathScope,
+      loadYaml
     );
   }
 };
@@ -373,7 +369,8 @@ var buildExtendsService = function (
   service,
   extendsServiceName,
   recipe,
-  pathScope
+  pathScope,
+  loadYaml
 ) {
   var extend = false;
   var extendsRecipeServiceNames = Object.keys(recipe.services);
@@ -403,7 +400,7 @@ var buildExtendsService = function (
           path.join(absolutePath, oldService.extends.file)
         );
       }
-      if (extend) service = extendsServices(service, recipe, pathScope);
+      if (extend) service = extendsServices(service, recipe, pathScope, loadYaml);
 
       return service;
     }
diff --git a/package-lock.json b/package-lock.json
index 4059666..ae2147b 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -10,8 +10,8 @@
       "license": "Apache-2.0",
       "dependencies": {
         "dockerode": "^3.3.0",
-        "js-yaml": "^4.0.0",
-        "tar-fs": "^2.1.1"
+        "tar-fs": "^2.1.1",
+        "yaml-env-defaults": "^2.0.2"
       },
       "devDependencies": {
         "chai": "~4.2.0",
@@ -1181,8 +1181,7 @@
     "node_modules/lodash": {
       "version": "4.17.21",
       "resolved": "https://registry.npmjs.org/lodash/-/lodash-4.17.21.tgz",
-      "integrity": "sha512-v2kDEe57lecTulaDIuNTPy3Ry4gLGJ6Z1O3vE1krgXZNrsQ+LFTGHVxVjcXPs17LhbZVGedAJv8XZ1tvj5FvSg==",
-      "dev": true
+      "integrity": "sha512-v2kDEe57lecTulaDIuNTPy3Ry4gLGJ6Z1O3vE1krgXZNrsQ+LFTGHVxVjcXPs17LhbZVGedAJv8XZ1tvj5FvSg=="
     },
     "node_modules/log-symbols": {
       "version": "3.0.0",
@@ -1889,6 +1888,15 @@
       "integrity": "sha512-JKhqTOwSrqNA1NY5lSztJ1GrBiUodLMmIZuLiDaMRJ+itFd+ABVE8XBjOvIWL+rSqNDC74LCSFmlb/U4UZ4hJQ==",
       "dev": true
     },
+    "node_modules/yaml-env-defaults": {
+      "version": "2.0.2",
+      "resolved": "https://registry.npmjs.org/yaml-env-defaults/-/yaml-env-defaults-2.0.2.tgz",
+      "integrity": "sha512-Ehl51pQZaRnUSsaqUGRHYUvEH+Kg4V9WNrcXtSbKPdav70NHdiXe/PALXXclycaLXx2N0wEG9qI2dhVu95F9SA==",
+      "dependencies": {
+        "js-yaml": "^4.1.0",
+        "lodash": "^4.17.21"
+      }
+    },
     "node_modules/yargs": {
       "version": "13.3.2",
       "resolved": "https://registry.npmjs.org/yargs/-/yargs-13.3.2.tgz",
@@ -2798,8 +2806,7 @@
     "lodash": {
       "version": "4.17.21",
       "resolved": "https://registry.npmjs.org/lodash/-/lodash-4.17.21.tgz",
-      "integrity": "sha512-v2kDEe57lecTulaDIuNTPy3Ry4gLGJ6Z1O3vE1krgXZNrsQ+LFTGHVxVjcXPs17LhbZVGedAJv8XZ1tvj5FvSg==",
-      "dev": true
+      "integrity": "sha512-v2kDEe57lecTulaDIuNTPy3Ry4gLGJ6Z1O3vE1krgXZNrsQ+LFTGHVxVjcXPs17LhbZVGedAJv8XZ1tvj5FvSg=="
     },
     "log-symbols": {
       "version": "3.0.0",
@@ -3349,6 +3356,15 @@
       "integrity": "sha512-JKhqTOwSrqNA1NY5lSztJ1GrBiUodLMmIZuLiDaMRJ+itFd+ABVE8XBjOvIWL+rSqNDC74LCSFmlb/U4UZ4hJQ==",
       "dev": true
     },
+    "yaml-env-defaults": {
+      "version": "2.0.2",
+      "resolved": "https://registry.npmjs.org/yaml-env-defaults/-/yaml-env-defaults-2.0.2.tgz",
+      "integrity": "sha512-Ehl51pQZaRnUSsaqUGRHYUvEH+Kg4V9WNrcXtSbKPdav70NHdiXe/PALXXclycaLXx2N0wEG9qI2dhVu95F9SA==",
+      "requires": {
+        "js-yaml": "^4.1.0",
+        "lodash": "^4.17.21"
+      }
+    },
     "yargs": {
       "version": "13.3.2",
       "resolved": "https://registry.npmjs.org/yargs/-/yargs-13.3.2.tgz",
diff --git a/package.json b/package.json
index bcb6e9e..d6c3ae8 100644
--- a/package.json
+++ b/package.json
@@ -22,8 +22,8 @@
   "homepage": "https://github.com/apocas/dockerode-compose#readme",
   "dependencies": {
     "dockerode": "^3.3.0",
-    "js-yaml": "^4.0.0",
-    "tar-fs": "^2.1.1"
+    "tar-fs": "^2.1.1",
+    "yaml-env-defaults": "^2.0.2"
   },
   "devDependencies": {
     "chai": "~4.2.0",
diff --git a/test/assets/wordpress_env.yml b/test/assets/wordpress_env.yml
new file mode 100644
index 0000000..97e76f9
--- /dev/null
+++ b/test/assets/wordpress_env.yml
@@ -0,0 +1,30 @@
+version: "3.9"
+    
+services:
+  db:
+    image: mysql:5.7
+    volumes:
+      - db_data:/var/lib/mysql
+    restart: always
+    environment:
+      MYSQL_ROOT_PASSWORD: somewordpress
+      MYSQL_DATABASE: wordpress
+      MYSQL_USER: wordpress
+      MYSQL_PASSWORD: wordpress
+    
+  wordpress:
+    depends_on:
+      - db
+    image: wordpress:latest
+    ports:
+      - "8000:80"
+    restart: always
+    volumes_from:
+      - db:ro
+    environment:
+      WORDPRESS_DB_HOST: db:3306
+      WORDPRESS_DB_USER: ${WORDPRESS_DB_USER}
+      WORDPRESS_DB_PASSWORD: ${WORDPRESS_DB_PASSWORD}
+      WORDPRESS_DB_NAME: wordpress
+volumes:
+  db_data: {}
\ No newline at end of file
diff --git a/test/compose.js b/test/compose.js
index af160d4..ed62a7f 100644
--- a/test/compose.js
+++ b/test/compose.js
@@ -1,5 +1,6 @@
 const expect = require('chai').expect,
   assert = require('assert');
+const DockerodeCompose = require('../compose');
 
 var compose = require('./spec_helper').compose;
 var compose_complex = require('./spec_helper').compose_complex;
@@ -53,6 +54,35 @@ describe('compose', function () {
     });
   });
 
+  describe('#up with env', function () {
+
+    const envMap = {
+      WORDPRESS_DB_USER: 'wordpress',
+      WORDPRESS_DB_PASSWORD: 'password'
+    };
+    const getProperty = (key) => {
+      // without default value will be throwed error in case of missing
+      return envMap[key] || 'Default value';
+    }
+
+    var compose = new DockerodeCompose(docker, './test/assets/wordpress_env.yml', 'wordpress_env', getProperty);
+    it("should do compose up", function (done) {
+      this.timeout(60000);
+      (async () => {
+        var report = await compose.up();
+        expect(report.services).to.be.ok;
+        done();
+      })();
+    });
+    afterEach('clean up', function (done) {
+      this.timeout(60000);
+      (async () => {
+        await compose.down({ volumes: true });
+        done();
+      })();
+    });
+  });
+
   describe('#down', function () {
     beforeEach('bring up', function (done) {
       this.timeout(20000);