diff --git a/core/app/services/uffizzi_core/compose_file/config_option_service.rb b/core/app/services/uffizzi_core/compose_file/config_option_service.rb
index a18f62fa..39b46002 100644
--- a/core/app/services/uffizzi_core/compose_file/config_option_service.rb
+++ b/core/app/services/uffizzi_core/compose_file/config_option_service.rb
@@ -12,6 +12,10 @@ def valid_option_format?(option)
 
     def config_options(compose_data)
       compose_data.each_with_object([]) do |(key, value), keys|
+        if compose_data.equal?(value)
+          raise UffizziCore::ComposeFile::ParseError, I18n.t('compose.infinite_recursion', key: key)
+        end
+
         keys << key
         keys.concat(config_options(value)) if value.is_a?(Hash)
       end
diff --git a/core/app/services/uffizzi_core/compose_file_service.rb b/core/app/services/uffizzi_core/compose_file_service.rb
index 41db77f5..6dee6c1b 100644
--- a/core/app/services/uffizzi_core/compose_file_service.rb
+++ b/core/app/services/uffizzi_core/compose_file_service.rb
@@ -158,7 +158,7 @@ def persist!(compose_file_form, cli_form)
 
     def load_compose_data(compose_content)
       begin
-        compose_data = YAML.safe_load(compose_content)
+        compose_data = YAML.safe_load(compose_content, aliases: true)
       rescue Psych::SyntaxError
         raise UffizziCore::ComposeFile::ParseError, 'Invalid compose file'
       end
diff --git a/core/config/locales/en.yml b/core/config/locales/en.yml
index 0430a74e..6074f4c0 100644
--- a/core/config/locales/en.yml
+++ b/core/config/locales/en.yml
@@ -59,6 +59,7 @@ en:
     invalid_healthcheck_command: "Service '%{name}' defines an invalid healthcheck: when 'test' is a list the first item must be either NONE, CMD or CMD-SHELL"
     string_or_array_error: "'%{option}' contains an invalid type, it should be a string, or an array"
     not_implemented: "'%{option}' option is not implemented"
+    infinite_recursion: "Found infinite recursion for key '%{key}'"
   secrets:
     duplicates_exists: Secret with key %{secrets} already exist.
     invalid_key_length: A secret key must be no longer than 256 characters.
diff --git a/core/test/controllers/uffizzi_core/api/cli/v1/projects/compose_files_controller_test.rb b/core/test/controllers/uffizzi_core/api/cli/v1/projects/compose_files_controller_test.rb
index cdc78c0d..c4ef9a30 100644
--- a/core/test/controllers/uffizzi_core/api/cli/v1/projects/compose_files_controller_test.rb
+++ b/core/test/controllers/uffizzi_core/api/cli/v1/projects/compose_files_controller_test.rb
@@ -175,4 +175,37 @@ class UffizziCore::Api::Cli::V1::Projects::ComposeFilesControllerTest < ActionCo
 
     assert_response :not_found
   end
+
+  test '#create - with yaml aliases' do
+    sign_in @admin
+
+    @compose_file.destroy!
+    create(:credential, :docker_hub, :active, account: @account)
+    base_attributes = attributes_for(:compose_file).slice(:source, :path)
+    file_content = File.read('test/fixtures/files/uffizzi-compose-with_alias.yml')
+    encoded_content = Base64.encode64(file_content)
+    compose_file_attributes = base_attributes.merge(content: encoded_content, repository_id: nil)
+    dependency = {
+      path: 'configs/vote.conf',
+      source: 'vote.conf',
+      content: json_fixture('files/compose_dependencies/configs/vote_conf.json')[:content],
+    }
+
+    params = {
+      project_slug: @project.slug,
+      compose_file: compose_file_attributes,
+      dependencies: [dependency],
+    }
+
+    differences = {
+      -> { UffizziCore::ComposeFile.main.count } => 1,
+      -> { UffizziCore::Template.with_creation_source(UffizziCore::Template.creation_source.compose_file).count } => 1,
+    }
+
+    assert_difference differences do
+      post :create, params: params, format: :json
+    end
+
+    assert_response :success
+  end
 end
diff --git a/core/test/fixtures/files/uffizzi-compose-with_alias.yml b/core/test/fixtures/files/uffizzi-compose-with_alias.yml
new file mode 100644
index 00000000..673711cf
--- /dev/null
+++ b/core/test/fixtures/files/uffizzi-compose-with_alias.yml
@@ -0,0 +1,25 @@
+x-nginx-configs: &nginx-configs
+  - source: vote_conf
+    target: /etc/nginx/conf.d
+
+x-srv-nginx: &srv-nginx
+  nginx:
+    image: nginx:latest
+    configs: *nginx-configs
+    entrypoint: /usr/sbin/nginx-debug
+    command:
+      - "-g"
+      - "daemon off;"
+
+services:
+  <<: *srv-nginx
+
+x-uffizzi-ingress:
+  service: nginx
+  port: 8080
+
+configs:
+  vote_conf:
+    file: configs/vote.conf
+  defaulf_conf:
+    file: config_files/config_file.conf