diff --git a/tests/commands/push.spec.ts b/tests/commands/push.spec.ts
index c13d13701a..1a0e91efcf 100644
--- a/tests/commands/push.spec.ts
+++ b/tests/commands/push.spec.ts
@@ -409,6 +409,59 @@ describe('balena push', function () {
 		});
 	});
 
+	it('should create the expected tar stream (single container, symbolic links in docker-compose, --gitignore)', async () => {
+		const projectPath = path.join(
+			projectsPath,
+			'docker-compose',
+			'symbolic-links',
+		);
+		const expectedFiles: ExpectedTarStreamFiles = {
+			'.balena/balena.yml': { fileSize: 197, type: 'file' },
+			'docker-compose.yml': { fileSize: 340, type: 'file' },
+			'service1/Dockerfile.template': { fileSize: 144, type: 'file' },
+			'service1/file1.sh': { fileSize: 12, type: 'file' },
+			'service1/test-ignore-from-symlink-path.txt': {
+				fileSize: 12,
+				type: 'file',
+			},
+			'service2/Dockerfile-alt': { fileSize: 13, type: 'file' },
+			'service2/src/file1.sh': { fileSize: 12, type: 'file' },
+		};
+		const regSecretsPath = await addRegSecretsEntries(expectedFiles);
+		const responseFilename = 'build-POST-v3.json';
+		const responseBody = await fs.readFile(
+			path.join(builderResponsePath, responseFilename),
+			'utf8',
+		);
+		const expectedResponseLines: string[] = [
+			...commonResponseLines[responseFilename],
+			...getDockerignoreWarn1(
+				[path.join(projectPath, 'service2', '.dockerignore')],
+				'push',
+			),
+		];
+		if (isWindows) {
+			expectedResponseLines.push(
+				`[Info] Converting line endings CRLF -> LF for file: ${path.join(
+					projectPath,
+					'service2',
+					'file2-crlf.sh',
+				)}`,
+			);
+		}
+
+		await testPushBuildStream({
+			builderMock: builder,
+			commandLine: `push testApp -s ${projectPath} -R ${regSecretsPath}`,
+			expectedFiles,
+			expectedQueryParams: commonQueryParams,
+			expectedResponseLines,
+			projectPath,
+			responseBody,
+			responseCode: 200,
+		});
+	});
+
 	it('should create the expected tar stream (single container, --multi-dockerignore)', async () => {
 		const projectPath = path.join(
 			projectsPath,
diff --git a/tests/test-data/projects/docker-compose/symbolic-links/.balena/balena.yml b/tests/test-data/projects/docker-compose/symbolic-links/.balena/balena.yml
new file mode 100644
index 0000000000..ef6db889e6
--- /dev/null
+++ b/tests/test-data/projects/docker-compose/symbolic-links/.balena/balena.yml
@@ -0,0 +1,7 @@
+build-variables:
+    global:
+        - MY_VAR_1=This is a variable
+        - MY_VAR_2=Also a variable
+    services:
+        service1:
+            - SERVICE1_VAR=This is a service specific variable
diff --git a/tests/test-data/projects/docker-compose/symbolic-links/.dockerignore b/tests/test-data/projects/docker-compose/symbolic-links/.dockerignore
new file mode 100644
index 0000000000..a0da95ebf0
--- /dev/null
+++ b/tests/test-data/projects/docker-compose/symbolic-links/.dockerignore
@@ -0,0 +1,3 @@
+service1/test-ignore-from-actual-path.*
+service1-symlink/test-ignore-from-symlink-path.*
+**/.dockerignore
diff --git a/tests/test-data/projects/docker-compose/symbolic-links/docker-compose.yml b/tests/test-data/projects/docker-compose/symbolic-links/docker-compose.yml
new file mode 100644
index 0000000000..867a1252ab
--- /dev/null
+++ b/tests/test-data/projects/docker-compose/symbolic-links/docker-compose.yml
@@ -0,0 +1,16 @@
+version: '2'
+volumes: 
+  resin-data:
+services:
+  service1:
+    volumes: 
+      - 'resin-data:/data'
+    build: ./service1-symlink
+  service2:
+    volumes: 
+      - 'resin-data:/data'
+    build:
+      context: ./service2
+      dockerfile: Dockerfile-alt
+      args:
+        - 'COMPOSE_ARG=an argument defined in the docker-compose.yml file'
diff --git a/tests/test-data/projects/docker-compose/symbolic-links/service1 b/tests/test-data/projects/docker-compose/symbolic-links/service1
new file mode 120000
index 0000000000..1257fe7d57
--- /dev/null
+++ b/tests/test-data/projects/docker-compose/symbolic-links/service1
@@ -0,0 +1 @@
+../symlink-fixtures/service1/
\ No newline at end of file
diff --git a/tests/test-data/projects/docker-compose/symbolic-links/service2/.dockerignore b/tests/test-data/projects/docker-compose/symbolic-links/service2/.dockerignore
new file mode 100644
index 0000000000..08012d02d2
--- /dev/null
+++ b/tests/test-data/projects/docker-compose/symbolic-links/service2/.dockerignore
@@ -0,0 +1 @@
+**/file1.sh
diff --git a/tests/test-data/projects/docker-compose/symbolic-links/service2/Dockerfile-alt b/tests/test-data/projects/docker-compose/symbolic-links/service2/Dockerfile-alt
new file mode 100644
index 0000000000..24a79d08b6
--- /dev/null
+++ b/tests/test-data/projects/docker-compose/symbolic-links/service2/Dockerfile-alt
@@ -0,0 +1 @@
+FROM busybox
diff --git a/tests/test-data/projects/docker-compose/symbolic-links/service2/src/file1.sh b/tests/test-data/projects/docker-compose/symbolic-links/service2/src/file1.sh
new file mode 100644
index 0000000000..c0d0fb45c3
--- /dev/null
+++ b/tests/test-data/projects/docker-compose/symbolic-links/service2/src/file1.sh
@@ -0,0 +1,2 @@
+line1
+line2
diff --git a/tests/test-data/projects/docker-compose/symlink-fixtures/service1/Dockerfile.template b/tests/test-data/projects/docker-compose/symlink-fixtures/service1/Dockerfile.template
new file mode 100644
index 0000000000..f3cf876814
--- /dev/null
+++ b/tests/test-data/projects/docker-compose/symlink-fixtures/service1/Dockerfile.template
@@ -0,0 +1,3 @@
+FROM balenalib/%%BALENA_MACHINE_NAME%%-alpine
+COPY ./file1.sh /
+CMD i=1; while :; do echo "service1 $i $(uname -a)"; sleep 10; i=$((i+1)); done
diff --git a/tests/test-data/projects/docker-compose/symlink-fixtures/service1/file1.sh b/tests/test-data/projects/docker-compose/symlink-fixtures/service1/file1.sh
new file mode 100644
index 0000000000..c0d0fb45c3
--- /dev/null
+++ b/tests/test-data/projects/docker-compose/symlink-fixtures/service1/file1.sh
@@ -0,0 +1,2 @@
+line1
+line2
diff --git a/tests/test-data/projects/docker-compose/symlink-fixtures/service1/test-ignore-from-actual-path.txt b/tests/test-data/projects/docker-compose/symlink-fixtures/service1/test-ignore-from-actual-path.txt
new file mode 100644
index 0000000000..47e97a9910
--- /dev/null
+++ b/tests/test-data/projects/docker-compose/symlink-fixtures/service1/test-ignore-from-actual-path.txt
@@ -0,0 +1 @@
+test-ignore
diff --git a/tests/test-data/projects/docker-compose/symlink-fixtures/service1/test-ignore-from-symlink-path.txt b/tests/test-data/projects/docker-compose/symlink-fixtures/service1/test-ignore-from-symlink-path.txt
new file mode 100644
index 0000000000..47e97a9910
--- /dev/null
+++ b/tests/test-data/projects/docker-compose/symlink-fixtures/service1/test-ignore-from-symlink-path.txt
@@ -0,0 +1 @@
+test-ignore