diff --git a/go.mod b/go.mod
index 3abcfd2f96..27a362d645 100644
--- a/go.mod
+++ b/go.mod
@@ -7,7 +7,7 @@ require (
 	github.com/Microsoft/go-winio v0.6.1
 	github.com/acarl005/stripansi v0.0.0-20180116102854-5a71ef0e047d
 	github.com/buger/goterm v1.0.4
-	github.com/compose-spec/compose-go/v2 v2.0.2
+	github.com/compose-spec/compose-go/v2 v2.0.3-0.20240407191136-f388192b8a39
 	github.com/containerd/console v1.0.4
 	github.com/containerd/containerd v1.7.13
 	github.com/davecgh/go-spew v1.1.1
diff --git a/go.sum b/go.sum
index 36720a4156..7a97c621f7 100644
--- a/go.sum
+++ b/go.sum
@@ -90,8 +90,8 @@ github.com/cncf/xds/go v0.0.0-20230607035331-e9ce68804cb4 h1:/inchEIKaYC1Akx+H+g
 github.com/cncf/xds/go v0.0.0-20230607035331-e9ce68804cb4/go.mod h1:eXthEFrGJvWHgFFCl3hGmgk+/aYT6PnTQLykKQRLhEs=
 github.com/codahale/rfc6979 v0.0.0-20141003034818-6a90f24967eb h1:EDmT6Q9Zs+SbUoc7Ik9EfrFqcylYqgPZ9ANSbTAntnE=
 github.com/codahale/rfc6979 v0.0.0-20141003034818-6a90f24967eb/go.mod h1:ZjrT6AXHbDs86ZSdt/osfBi5qfexBrKUdONk989Wnk4=
-github.com/compose-spec/compose-go/v2 v2.0.2 h1:zhXMV7VWI00Su0LdKt8/sxeXxcjLWhmGmpEyw+ZYznI=
-github.com/compose-spec/compose-go/v2 v2.0.2/go.mod h1:bEPizBkIojlQ20pi2vNluBa58tevvj0Y18oUSHPyfdc=
+github.com/compose-spec/compose-go/v2 v2.0.3-0.20240407191136-f388192b8a39 h1:ZUpnv0xA75X9gy9Y7hjJm51nflGbr+2URaLXBtEic7A=
+github.com/compose-spec/compose-go/v2 v2.0.3-0.20240407191136-f388192b8a39/go.mod h1:bEPizBkIojlQ20pi2vNluBa58tevvj0Y18oUSHPyfdc=
 github.com/containerd/cgroups v1.1.0 h1:v8rEWFl6EoqHB+swVNjVoCJE8o3jX7e8nqBGPLaDFBM=
 github.com/containerd/cgroups v1.1.0/go.mod h1:6ppBcbh/NOOUU+dMKrykgaBnK9lCIBxHqJDGwsa1mIw=
 github.com/containerd/console v1.0.4 h1:F2g4+oChYvBTsASRTz8NP6iIAi97J3TtSAsLbIFn4ro=
diff --git a/pkg/compose/build.go b/pkg/compose/build.go
index 8dacba1ba4..89cc48bba0 100644
--- a/pkg/compose/build.go
+++ b/pkg/compose/build.go
@@ -388,7 +388,11 @@ func (s *composeService) toBuildOptions(project *types.Project, service types.Se
 	if len(service.Build.Tags) > 0 {
 		tags = append(tags, service.Build.Tags...)
 	}
-	var allow []entitlements.Entitlement
+
+	allow, err := buildflags.ParseEntitlements(service.Build.Entitlements)
+	if err != nil {
+		return build.Options{}, err
+	}
 	if service.Build.Privileged {
 		allow = append(allow, entitlements.EntitlementSecurityInsecure)
 	}
diff --git a/pkg/e2e/build_test.go b/pkg/e2e/build_test.go
index 65044519b5..8c87b99c29 100644
--- a/pkg/e2e/build_test.go
+++ b/pkg/e2e/build_test.go
@@ -471,3 +471,35 @@ func TestBuildBuilder(t *testing.T) {
 	})
 
 }
+
+func TestBuildEntitlements(t *testing.T) {
+	c := NewParallelCLI(t)
+
+	// declare builder
+	result := c.RunDockerCmd(t, "buildx", "create", "--name", "build-insecure", "--use", "--bootstrap", "--buildkitd-flags",
+		`'--allow-insecure-entitlement=security.insecure'`)
+	assert.NilError(t, result.Error)
+
+	t.Cleanup(func() {
+		c.RunDockerComposeCmd(t, "--project-directory", "fixtures/build-test/entitlements", "down")
+		_ = c.RunDockerCmd(t, "buildx", "rm", "-f", "build-insecure")
+	})
+
+	t.Run("use build privileged mode to run insecure build command", func(t *testing.T) {
+		res := c.RunDockerComposeCmd(t, "--project-directory", "fixtures/build-test/entitlements", "build")
+		capEffRe := regexp.MustCompile("CapEff:\t([0-9a-f]+)")
+		matches := capEffRe.FindStringSubmatch(res.Stdout())
+		assert.Equal(t, 2, len(matches), "Did not match CapEff in output, matches: %v", matches)
+
+		capEff, err := strconv.ParseUint(matches[1], 16, 64)
+		assert.NilError(t, err, "Parsing CapEff: %s", matches[1])
+
+		// NOTE: can't use constant from x/sys/unix or tests won't compile on macOS/Windows
+		// #define CAP_SYS_ADMIN        21
+		// https://github.com/torvalds/linux/blob/v6.1/include/uapi/linux/capability.h#L278
+		const capSysAdmin = 0x15
+		if capEff&capSysAdmin != capSysAdmin {
+			t.Fatalf("CapEff %s is missing CAP_SYS_ADMIN", matches[1])
+		}
+	})
+}
diff --git a/pkg/e2e/fixtures/build-test/entitlements/Dockerfile b/pkg/e2e/fixtures/build-test/entitlements/Dockerfile
new file mode 100644
index 0000000000..a242eb52d4
--- /dev/null
+++ b/pkg/e2e/fixtures/build-test/entitlements/Dockerfile
@@ -0,0 +1,19 @@
+# syntax = docker/dockerfile:experimental
+
+
+#   Copyright 2020 Docker Compose CLI authors
+
+#   Licensed under the Apache License, Version 2.0 (the "License");
+#   you may not use this file except in compliance with the License.
+#   You may obtain a copy of the License at
+
+#       http://www.apache.org/licenses/LICENSE-2.0
+
+#   Unless required by applicable law or agreed to in writing, software
+#   distributed under the License is distributed on an "AS IS" BASIS,
+#   WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+#   See the License for the specific language governing permissions and
+#   limitations under the License.
+
+FROM alpine
+RUN --security=insecure cat /proc/self/status | grep CapEff
diff --git a/pkg/e2e/fixtures/build-test/entitlements/compose.yaml b/pkg/e2e/fixtures/build-test/entitlements/compose.yaml
new file mode 100644
index 0000000000..403529e647
--- /dev/null
+++ b/pkg/e2e/fixtures/build-test/entitlements/compose.yaml
@@ -0,0 +1,7 @@
+services:
+  privileged-service:
+    build:
+      context: .
+      entitlements:
+        - security.insecure
+