diff --git a/cli/options.go b/cli/options.go
index c1d54ee6..50b6f07d 100644
--- a/cli/options.go
+++ b/cli/options.go
@@ -461,8 +461,9 @@ func withNamePrecedenceLoad(absWorkingDir string, options *ProjectOptions) func(
 
 func withConvertWindowsPaths(options *ProjectOptions) func(*loader.Options) {
 	return func(o *loader.Options) {
-		o.ConvertWindowsPaths = utils.StringToBool(options.Environment["COMPOSE_CONVERT_WINDOWS_PATHS"])
-		o.ResolvePaths = true
+		if o.ResolvePaths {
+			o.ConvertWindowsPaths = utils.StringToBool(options.Environment["COMPOSE_CONVERT_WINDOWS_PATHS"])
+		}
 	}
 }
 
diff --git a/cli/options_windows_test.go b/cli/options_windows_test.go
index 9effc849..fc58d2a2 100644
--- a/cli/options_windows_test.go
+++ b/cli/options_windows_test.go
@@ -28,7 +28,8 @@ func TestConvertWithEnvVar(t *testing.T) {
 	defer os.Unsetenv("COMPOSE_CONVERT_WINDOWS_PATHS")
 	opts, _ := NewProjectOptions([]string{"testdata/simple/compose-with-paths.yaml"},
 		WithOsEnv,
-		WithWorkingDirectory("C:\\project-dir\\"))
+		WithWorkingDirectory("C:\\project-dir\\"),
+		WithResolvedPaths(true))
 
 	p, err := ProjectFromOptions(opts)