diff --git a/lib/utils/compose-types.d.ts b/lib/utils/compose-types.d.ts
index 50816c1af9..ac9dc6757a 100644
--- a/lib/utils/compose-types.d.ts
+++ b/lib/utils/compose-types.d.ts
@@ -55,6 +55,7 @@ export interface ComposeOpts {
 	noParentCheck: boolean;
 	projectName: string;
 	projectPath: string;
+	isLocal?: boolean;
 }
 
 export interface ComposeCliFlags {
diff --git a/lib/utils/compose_ts.ts b/lib/utils/compose_ts.ts
index 92a3331509..b94ace66fe 100644
--- a/lib/utils/compose_ts.ts
+++ b/lib/utils/compose_ts.ts
@@ -136,6 +136,7 @@ export async function loadProject(
 	} else {
 		logger.logDebug('Resolving project...');
 		[composeName, composeStr] = await resolveProject(logger, opts.projectPath);
+
 		if (composeName) {
 			if (opts.dockerfilePath) {
 				logger.logWarn(
@@ -148,11 +149,52 @@ export async function loadProject(
 			);
 			composeStr = compose.defaultComposition(undefined, opts.dockerfilePath);
 		}
+
+		// If local push, merge dev compose overlay
+		if (opts.isLocal) {
+			composeStr = await mergeDevComposeOverlay(
+				logger,
+				composeStr,
+				opts.projectPath,
+			);
+		}
 	}
 	logger.logDebug('Creating project...');
 	return createProject(opts.projectPath, composeStr, opts.projectName);
 }
 
+/**
+ * Check for existence of docker-compose dev overlay file
+ * and merge in services definitions.
+ */
+async function mergeDevComposeOverlay(
+	logger: Logger,
+	composeStr: string,
+	projectRoot: string,
+) {
+	const devOverlayFilename = 'docker-compose.dev.yml';
+	const devOverlayPath = path.join(projectRoot, devOverlayFilename);
+
+	if (await exists(devOverlayPath)) {
+		logger.logInfo(
+			`Docker compose dev overlay detected (${devOverlayFilename}) - merging.`,
+		);
+		try {
+			const yaml = await import('js-yaml');
+			const compose = yaml.load(composeStr);
+			const devOverlay = yaml.load(await fs.readFile(devOverlayPath, 'utf8'));
+			// We only want to merge the services section
+			compose.services = { ...compose.services, ...devOverlay.services };
+			composeStr = yaml.dump(compose);
+		} catch (err) {
+			err.message = `Error merging docker compose dev overlay file "${devOverlayPath}":\n${err.message}`;
+			throw err;
+		}
+	}
+
+	return composeStr;
+}
+
 /**
  * Look into the given directory for valid compose files and return
  * the contents of the first one found.
@@ -181,6 +223,7 @@ async function resolveProject(
 	if (!quiet && !composeFileName) {
 		logger.logInfo(`No "docker-compose.yml" file found at "${projectRoot}"`);
 	}
+
 	return [composeFileName, composeFileContents];
 }
 
diff --git a/lib/utils/device/deploy.ts b/lib/utils/device/deploy.ts
index ad7b7602fa..4b120364e2 100644
--- a/lib/utils/device/deploy.ts
+++ b/lib/utils/device/deploy.ts
@@ -186,6 +186,7 @@ export async function deployToDevice(opts: DeviceDeployOptions): Promise<void> {
 		noParentCheck: opts.noParentCheck,
 		projectName: 'local',
 		projectPath: opts.source,
+		isLocal: true,
 	});
 
 	// Attempt to attach to the device's docker daemon