diff --git a/podman_compose.py b/podman_compose.py
index 46725ffd..a24aa612 100755
--- a/podman_compose.py
+++ b/podman_compose.py
@@ -63,6 +63,8 @@ def filteri(a: list[str]) -> list[str]:
 
 @overload
 def try_int(i: int | str, fallback: int) -> int: ...
+
+
 @overload
 def try_int(i: int | str, fallback: None) -> int | None: ...
 
@@ -272,8 +274,12 @@ def fix_mount_dict(
 
 @overload
 def rec_subs(value: dict, subs_dict: dict[str, Any]) -> dict: ...
+
+
 @overload
 def rec_subs(value: str, subs_dict: dict[str, Any]) -> str: ...
+
+
 @overload
 def rec_subs(value: Iterable, subs_dict: dict[str, Any]) -> Iterable: ...
 
@@ -2376,7 +2382,18 @@ def _parse_compose_file(self) -> None:
             # If `include` is used, append included files to files
             include = compose.get("include")
             if include:
-                files.extend([os.path.join(os.path.dirname(filename), i) for i in include])
+                # Check if 'include' block is dict or list of strings
+                for i in include:
+                    if isinstance(i, str):
+                        files.append(os.path.join(os.path.dirname(filename), i))
+                    elif isinstance(i, dict):
+                        path = i.get("path")
+                        if path:
+                            # Extend files list with values from path key
+                            files.extend([os.path.join(os.path.dirname(filename), p) for p in path])
+                        elif not path:
+                            # Raise error if path is missing
+                            raise RuntimeError("Please use 'path' as key in include block")
                 # As compose obj is updated and tested with every loop, not deleting `include`
                 # from it, results in it being tested again and again, original values for
                 # `include` be appended to `files`, and, included files be processed for ever.
diff --git a/tests/integration/include/docker-compose.include-dict.yaml b/tests/integration/include/docker-compose.include-dict.yaml
new file mode 100644
index 00000000..40826190
--- /dev/null
+++ b/tests/integration/include/docker-compose.include-dict.yaml
@@ -0,0 +1,6 @@
+version: '3.6'
+
+include:
+  - path:
+    - docker-compose.base.yaml
+    - docker-compose.extend.yaml
diff --git a/tests/integration/include/test_podman_compose_include.py b/tests/integration/include/test_podman_compose_include.py
index bdd1857e..f8d1731e 100644
--- a/tests/integration/include/test_podman_compose_include.py
+++ b/tests/integration/include/test_podman_compose_include.py
@@ -62,3 +62,63 @@ def test_podman_compose_include(self) -> None:
         # check container did not exists anymore
         out, _ = self.run_subprocess_assert_returncode(command_check_container)
         self.assertEqual(out, b"")
+
+    def test_podman_compose_include_dict(self) -> None:
+        """
+        Test that podman-compose can execute podman-compose -f <file> up with include
+        :return:
+        """
+        main_path = Path(__file__).parent.parent.parent.parent
+
+        command_up = [
+            "coverage",
+            "run",
+            str(main_path.joinpath("podman_compose.py")),
+            "-f",
+            str(
+                main_path.joinpath(
+                    "tests", "integration", "include", "docker-compose.include-dict.yaml"
+                )
+            ),
+            "up",
+            "-d",
+        ]
+
+        command_check_container = [
+            "podman",
+            "ps",
+            "-a",
+            "--filter",
+            "label=io.podman.compose.project=include",
+            "--format",
+            '"{{.Image}}"',
+        ]
+
+        command_container_id = [
+            "podman",
+            "ps",
+            "-a",
+            "--filter",
+            "label=io.podman.compose.project=include",
+            "--format",
+            '"{{.ID}}"',
+        ]
+
+        command_down = ["podman", "rm", "--force"]
+
+        self.run_subprocess_assert_returncode(command_up)
+        out, _ = self.run_subprocess_assert_returncode(command_check_container)
+        expected_output = b'"localhost/nopush/podman-compose-test:latest"\n' * 2
+        self.assertEqual(out, expected_output)
+        # Get container ID to remove it
+        out, _ = self.run_subprocess_assert_returncode(command_container_id)
+        self.assertNotEqual(out, b"")
+        container_ids = out.decode().strip().split("\n")
+        container_ids = [container_id.replace('"', "") for container_id in container_ids]
+        command_down.extend(container_ids)
+        out, _ = self.run_subprocess_assert_returncode(command_down)
+        # cleanup test image(tags)
+        self.assertNotEqual(out, b"")
+        # check container did not exists anymore
+        out, _ = self.run_subprocess_assert_returncode(command_check_container)
+        self.assertEqual(out, b"")