diff --git a/cmd/compose/compose.go b/cmd/compose/compose.go
index 2b4bcb638e..e81bc21eb9 100644
--- a/cmd/compose/compose.go
+++ b/cmd/compose/compose.go
@@ -27,6 +27,7 @@ import (
 	"path/filepath"
 	"strconv"
 	"strings"
+	"sync/atomic"
 	"syscall"
 
 	"github.com/compose-spec/compose-go/v2/cli"
@@ -108,10 +109,12 @@ func AdaptCmd(fn CobraCommand) func(cmd *cobra.Command, args []string) error {
 	return func(cmd *cobra.Command, args []string) error {
 		ctx, cancel := context.WithCancel(cmd.Context())
 
+		var caughtSignal atomic.Value
 		s := make(chan os.Signal, 1)
 		signal.Notify(s, syscall.SIGTERM, syscall.SIGINT)
 		go func() {
-			<-s
+			sig := <-s
+			caughtSignal.Store(sig)
 			cancel()
 			signal.Stop(s)
 			close(s)
@@ -119,6 +122,11 @@ func AdaptCmd(fn CobraCommand) func(cmd *cobra.Command, args []string) error {
 
 		err := fn(ctx, cmd, args)
 		if api.IsErrCanceled(err) || errors.Is(ctx.Err(), context.Canceled) {
+			if sig, ok := caughtSignal.Load().(os.Signal); ok {
+				reraiseSignal(sig)
+				// On Unix, process dies here from signal.
+				// On Windows (or fallback), continues below.
+			}
 			err = dockercli.StatusError{
 				StatusCode: 130,
 			}
diff --git a/cmd/compose/signal_unix.go b/cmd/compose/signal_unix.go
new file mode 100644
index 0000000000..8c4b67628f
--- /dev/null
+++ b/cmd/compose/signal_unix.go
@@ -0,0 +1,32 @@
+//go:build !windows
+
+/*
+   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.
+*/
+
+package compose
+
+import (
+	"os"
+	"os/signal"
+	"syscall"
+)
+
+func reraiseSignal(sig os.Signal) {
+	if s, ok := sig.(syscall.Signal); ok {
+		signal.Reset(s)
+		_ = syscall.Kill(syscall.Getpid(), s)
+	}
+}
diff --git a/cmd/compose/signal_windows.go b/cmd/compose/signal_windows.go
new file mode 100644
index 0000000000..8e19e57b63
--- /dev/null
+++ b/cmd/compose/signal_windows.go
@@ -0,0 +1,25 @@
+//go:build windows
+
+/*
+   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.
+*/
+
+package compose
+
+import "os"
+
+// reraiseSignal is a no-op on Windows as signal re-raising for parent
+// process detection is not supported. Falls through to os.Exit(130).
+func reraiseSignal(_ os.Signal) {}
diff --git a/pkg/compose/pull.go b/pkg/compose/pull.go
index 8a02dc719b..1bcc5547ae 100644
--- a/pkg/compose/pull.go
+++ b/pkg/compose/pull.go
@@ -211,7 +211,7 @@ func (s *composeService) pullServiceImage(ctx context.Context, service types.Ser
 			Status: api.Warning,
 			Text:   "Interrupted",
 		})
-		return "", nil
+		return "", ctx.Err()
 	}
 
 	// check if has error and the service has a build section
diff --git a/pkg/e2e/cancel_test.go b/pkg/e2e/cancel_test.go
index 64f3ff609a..6321c0f815 100644
--- a/pkg/e2e/cancel_test.go
+++ b/pkg/e2e/cancel_test.go
@@ -74,9 +74,8 @@ func TestComposeCancel(t *testing.T) {
 		case <-ctx.Done():
 			t.Fatal("test context canceled")
 		case err := <-processDone:
-			// TODO(milas): Compose should really not return exit code 130 here,
-			// 	this is an old hack for the compose-cli wrapper
-			assert.Error(t, err, "exit status 130",
+			// Process should be killed by re-raised SIGINT signal
+			assert.ErrorContains(t, err, "signal: interrupt",
 				"STDOUT:\n%s\nSTDERR:\n%s\n", stdout.String(), stderr.String())
 		case <-time.After(10 * time.Second):
 			t.Fatal("timeout waiting for Compose exit")
diff --git a/pkg/e2e/up_test.go b/pkg/e2e/up_test.go
index d34f2061e2..d8d785d7b6 100644
--- a/pkg/e2e/up_test.go
+++ b/pkg/e2e/up_test.go
@@ -94,11 +94,13 @@ func TestUpDependenciesNotStopped(t *testing.T) {
 	err = cmd.Wait()
 	if err != nil {
 		var exitErr *exec.ExitError
-		errors.As(err, &exitErr)
-		if exitErr.ExitCode() == -1 {
-			t.Fatalf("`compose up` was killed: %v", err)
+		if !errors.As(err, &exitErr) {
+			t.Fatalf("`compose up` failed with non-exit error: %v", err)
 		}
-		require.Equal(t, 130, exitErr.ExitCode())
+		// Process is expected to die from re-raised SIGINT signal (exit code -1).
+		// If signal re-raise doesn't terminate the process, the fallback path exits with code 130.
+		assert.Assert(t, exitErr.ExitCode() == -1 || exitErr.ExitCode() == 130,
+			"`compose up` exited with unexpected code: %d (%v)", exitErr.ExitCode(), err)
 	}
 
 	RequireServiceState(t, c, "app", "exited")