diff --git a/bake/bake_test.go b/bake/bake_test.go
index bf72d8af..1670382d 100644
--- a/bake/bake_test.go
+++ b/bake/bake_test.go
@@ -278,9 +278,19 @@ services:
 `),
 	}
 
+	fp3 := File{
+		Name: "docker-compose3.yml",
+		Data: []byte(
+			`version: "3"
+services:
+  webapp:
+    entrypoint: echo 1
+`),
+	}
+
 	ctx := context.TODO()
 
-	m, g, err := ReadTargets(ctx, []File{fp, fp2}, []string{"default"}, nil, nil)
+	m, g, err := ReadTargets(ctx, []File{fp, fp2, fp3}, []string{"default"}, nil, nil)
 	require.NoError(t, err)
 
 	require.Equal(t, 3, len(m))
@@ -446,6 +456,40 @@ func TestReadContextFromTargetUnknown(t *testing.T) {
 	require.Error(t, err)
 	require.Contains(t, err.Error(), "failed to find target bar")
 }
+
+func TestReadEmptyTargets(t *testing.T) {
+	t.Parallel()
+
+	fp := File{
+		Name: "docker-bake.hcl",
+		Data: []byte(`target "app1" {}`),
+	}
+
+	fp2 := File{
+		Name: "docker-compose.yml",
+		Data: []byte(`
+services:
+  app2: {}
+`),
+	}
+
+	ctx := context.TODO()
+
+	m, _, err := ReadTargets(ctx, []File{fp, fp2}, []string{"app1", "app2"}, nil, nil)
+	require.NoError(t, err)
+
+	require.Equal(t, 2, len(m))
+	_, ok := m["app1"]
+	require.True(t, ok)
+	_, ok = m["app2"]
+	require.True(t, ok)
+
+	require.Equal(t, "Dockerfile", *m["app1"].Dockerfile)
+	require.Equal(t, ".", *m["app1"].Context)
+	require.Equal(t, "Dockerfile", *m["app2"].Dockerfile)
+	require.Equal(t, ".", *m["app2"].Context)
+}
+
 func TestReadContextFromTargetChain(t *testing.T) {
 	ctx := context.TODO()
 	fp := File{
diff --git a/bake/compose.go b/bake/compose.go
index 08aa96df..3ce1eb8e 100644
--- a/bake/compose.go
+++ b/bake/compose.go
@@ -3,7 +3,6 @@ package bake
 import (
 	"fmt"
 	"os"
-	"reflect"
 	"strings"
 
 	"github.com/compose-spec/compose-go/loader"
@@ -12,6 +11,9 @@ import (
 	"gopkg.in/yaml.v3"
 )
 
+// errComposeInvalid is returned when a compose file is invalid
+var errComposeInvalid = errors.New("invalid compose file")
+
 func parseCompose(dt []byte) (*compose.Project, error) {
 	return loader.Load(compose.ConfigDetails{
 		ConfigFiles: []compose.ConfigFile{
@@ -22,6 +24,7 @@ func parseCompose(dt []byte) (*compose.Project, error) {
 		Environment: envMap(os.Environ()),
 	}, func(options *loader.Options) {
 		options.SkipNormalization = true
+		options.SkipConsistencyCheck = true
 	})
 }
 
@@ -42,9 +45,11 @@ func ParseCompose(dt []byte) (*Config, error) {
 	if err != nil {
 		return nil, err
 	}
+	if err = composeValidate(cfg); err != nil {
+		return nil, err
+	}
 
 	var c Config
-	var zeroBuildConfig compose.BuildConfig
 	if len(cfg.Services) > 0 {
 		c.Groups = []*Group{}
 		c.Targets = []*Target{}
@@ -52,13 +57,8 @@ func ParseCompose(dt []byte) (*Config, error) {
 		g := &Group{Name: "default"}
 
 		for _, s := range cfg.Services {
-
-			if s.Build == nil || reflect.DeepEqual(s.Build, zeroBuildConfig) {
-				// if not make sure they're setting an image or it's invalid d-c.yml
-				if s.Image == "" {
-					return nil, fmt.Errorf("compose file invalid: service %s has neither an image nor a build context specified. At least one must be provided", s.Name)
-				}
-				continue
+			if s.Build == nil {
+				s.Build = &compose.BuildConfig{}
 			}
 
 			if err = validateTargetName(s.Name); err != nil {
@@ -219,6 +219,28 @@ func (t *Target) composeExtTarget(exts map[string]interface{}) error {
 	return nil
 }
 
+// compposeValidate validates a compose file
+func composeValidate(project *compose.Project) error {
+	for _, s := range project.Services {
+		if s.Build != nil {
+			for _, secret := range s.Build.Secrets {
+				if _, ok := project.Secrets[secret.Source]; !ok {
+					return errors.Wrap(errComposeInvalid, fmt.Sprintf("service %q refers to undefined build secret %s", s.Name, secret.Source))
+				}
+			}
+		}
+	}
+	for name, secret := range project.Secrets {
+		if secret.External.External {
+			continue
+		}
+		if secret.File == "" && secret.Environment == "" {
+			return errors.Wrap(errComposeInvalid, fmt.Sprintf("secret %q must declare either `file` or `environment`", name))
+		}
+	}
+	return nil
+}
+
 // composeToBuildkitSecret converts secret from compose format to buildkit's
 // csv format.
 func composeToBuildkitSecret(inp compose.ServiceSecretConfig, psecret compose.SecretConfig) (string, error) {
diff --git a/bake/compose_test.go b/bake/compose_test.go
index 0735ee80..2ef51a05 100644
--- a/bake/compose_test.go
+++ b/bake/compose_test.go
@@ -153,21 +153,15 @@ services:
 	require.Equal(t, c.Targets[0].Args["BRB"], "FOO")
 }
 
-func TestBogusCompose(t *testing.T) {
+func TestInconsistentComposeFile(t *testing.T) {
 	var dt = []byte(`
 services:
-  db:
-    labels:
-      - "foo"
   webapp:
-    build:
-      context: .
-      target: webapp
+    entrypoint: echo 1
 `)
 
 	_, err := ParseCompose(dt)
-	require.Error(t, err)
-	require.Contains(t, err.Error(), "has neither an image nor a build context specified: invalid compose project")
+	require.NoError(t, err)
 }
 
 func TestAdvancedNetwork(t *testing.T) {
@@ -420,3 +414,69 @@ services:
 		})
 	}
 }
+
+func TestValidateComposeSecret(t *testing.T) {
+	cases := []struct {
+		name    string
+		dt      []byte
+		wantErr bool
+	}{
+		{
+			name: "secret set by file",
+			dt: []byte(`
+secrets:
+  foo:
+    file: .secret
+`),
+			wantErr: false,
+		},
+		{
+			name: "secret set by environment",
+			dt: []byte(`
+secrets:
+  foo:
+    environment: TOKEN
+`),
+			wantErr: false,
+		},
+		{
+			name: "external secret",
+			dt: []byte(`
+secrets:
+  foo:
+    external: true
+`),
+			wantErr: false,
+		},
+		{
+			name: "unset secret",
+			dt: []byte(`
+secrets:
+  foo: {}
+`),
+			wantErr: true,
+		},
+		{
+			name: "undefined secret",
+			dt: []byte(`
+services:
+  foo:
+    build:
+      secrets:
+        - token
+`),
+			wantErr: true,
+		},
+	}
+	for _, tt := range cases {
+		tt := tt
+		t.Run(tt.name, func(t *testing.T) {
+			_, err := ParseCompose(tt.dt)
+			if tt.wantErr {
+				require.Error(t, err)
+			} else {
+				require.NoError(t, err)
+			}
+		})
+	}
+}