diff --git a/new.go b/new.go
index 7a306da225..5780224549 100644
--- a/new.go
+++ b/new.go
@@ -77,6 +77,24 @@ func pullAndFindImage(store storage.Store, imageName string, options BuilderOpti
 	return img, ref, nil
 }
 
+func getImageName(name string, img *storage.Image) string {
+	imageName := name
+	if len(img.Names) > 0 {
+		imageName = img.Names[0]
+		// When the image used by the container is a tagged image
+		// the container name might be set to the original image instead of
+		// the image given in the "form" command line.
+		// This loop is supposed to fix this.
+		for _, n := range img.Names {
+			if strings.Contains(n, name) {
+				imageName = n
+				break
+			}
+		}
+	}
+	return imageName
+}
+
 func imageNamePrefix(imageName string) string {
 	prefix := imageName
 	s := strings.Split(imageName, "/")
@@ -207,9 +225,7 @@ func newBuilder(store storage.Store, options BuilderOptions) (*Builder, error) {
 	image := options.FromImage
 	imageID := ""
 	if img != nil {
-		if len(img.Names) > 0 {
-			image = img.Names[0]
-		}
+		image = getImageName(image, img)
 		imageID = img.ID
 	}
 	if manifest, config, err = imageManifestAndConfig(ref, systemContext); err != nil {
diff --git a/new_test.go b/new_test.go
new file mode 100644
index 0000000000..60fb31c682
--- /dev/null
+++ b/new_test.go
@@ -0,0 +1,28 @@
+package buildah
+
+import (
+	"testing"
+
+	"github.com/containers/storage"
+)
+
+func TestGetImageName(t *testing.T) {
+	tt := []struct {
+		caseName string
+		name     string
+		names    []string
+		expected string
+	}{
+		{"tagged image", "busybox1", []string{"docker.io/library/busybox:latest", "docker.io/library/busybox1:latest"}, "docker.io/library/busybox1:latest"},
+		{"image name not in the resolved image names", "image1", []string{"docker.io/library/busybox:latest", "docker.io/library/busybox1:latest"}, "docker.io/library/busybox:latest"},
+		{"resolved image with empty name list", "image1", []string{}, "image1"},
+	}
+
+	for _, tc := range tt {
+		img := &storage.Image{Names: tc.names}
+		res := getImageName(tc.name, img)
+		if res != tc.expected {
+			t.Errorf("test case '%s' failed: expected %#v but got %#v", tc.caseName, tc.expected, res)
+		}
+	}
+}
diff --git a/tests/from.bats b/tests/from.bats
index 1447ba8440..095257fb6a 100644
--- a/tests/from.bats
+++ b/tests/from.bats
@@ -73,7 +73,6 @@ load helpers
 }
 
 @test "from-authenticate-cert-and-creds" {
-
   mkdir -p  ${TESTDIR}/auth
   # Create creds and store in ${TESTDIR}/auth/htpasswd
 #  docker run --entrypoint htpasswd registry:2 -Bbn testuser testpassword > ${TESTDIR}/auth/htpasswd
@@ -112,3 +111,14 @@ load helpers
 #  buildah rm $ctrid
 #  buildah rmi -f $(buildah --debug=false images -q)
 }
+
+@test "from-tagged-image" {
+  # Github #396: Make sure the container name starts with the correct image even when it's tagged.
+  cid=$(buildah from --pull=false --signature-policy ${TESTSDIR}/policy.json scratch)
+  buildah commit --signature-policy ${TESTSDIR}/policy.json "$cid" scratch2
+  buildah rm $cid
+  buildah tag scratch2 scratch3
+  cid=$(buildah from --signature-policy ${TESTSDIR}/policy.json scratch3)
+  [ "$cid" == scratch3-working-container ]
+  buildah rmi -f --all
+}