diff --git a/crates/dev_container/src/devcontainer_json.rs b/crates/dev_container/src/devcontainer_json.rs
index 38588241bd..81c512486f 100644
--- a/crates/dev_container/src/devcontainer_json.rs
+++ b/crates/dev_container/src/devcontainer_json.rs
@@ -278,6 +278,13 @@ impl DevContainer {
         }
     }
 
+    pub(crate) fn override_command(&self) -> bool {
+        self.override_command.unwrap_or(!matches!(
+            self.build_type(),
+            DevContainerBuildType::DockerCompose
+        ))
+    }
+
     pub(crate) fn validate_devcontainer_contents(&self) -> Result<(), DevContainerError> {
         match self.build_type() {
             DevContainerBuildType::Image(_) => Ok(()),
@@ -634,6 +641,39 @@ mod test {
         },
     };
 
+    #[test]
+    fn override_command_defaults_depend_on_build_type() {
+        let image = deserialize_devcontainer_json(r#"{"image":"ubuntu"}"#).expect("image config");
+        assert!(image.override_command());
+
+        let dockerfile = deserialize_devcontainer_json(r#"{"build":{"dockerfile":"Dockerfile"}}"#)
+            .expect("Dockerfile config");
+        assert!(dockerfile.override_command());
+
+        let compose = deserialize_devcontainer_json(
+            r#"{"dockerComposeFile":"compose.yaml","service":"app"}"#,
+        )
+        .expect("Compose config");
+        assert!(!compose.override_command());
+    }
+
+    #[test]
+    fn explicit_override_command_takes_precedence_over_build_type_default() {
+        let image = deserialize_devcontainer_json(r#"{"image":"ubuntu","overrideCommand":false}"#)
+            .expect("image config");
+        assert!(!image.override_command());
+
+        let compose = deserialize_devcontainer_json(
+            r#"{
+                "dockerComposeFile":"compose.yaml",
+                "service":"app",
+                "overrideCommand":true
+            }"#,
+        )
+        .expect("Compose config");
+        assert!(compose.override_command());
+    }
+
     #[test]
     fn should_deserialize_customizations_with_unknown_keys() {
         let json_with_other_customizations = r#"
diff --git a/crates/dev_container/src/devcontainer_manifest.rs b/crates/dev_container/src/devcontainer_manifest.rs
index d3ee79cf88..c8a5bce1f8 100644
--- a/crates/dev_container/src/devcontainer_manifest.rs
+++ b/crates/dev_container/src/devcontainer_manifest.rs
@@ -877,9 +877,7 @@ RUN sed -i -E 's/((^|\s)PATH=)([^\$]*)$/\1\${{PATH:-\3}}/g' /etc/profile || true
             push_unique_string(&mut security_opt, &opt);
         }
 
-        let entrypoint_script = if dev_container.override_command == Some(false) {
-            None
-        } else {
+        let entrypoint_script = if dev_container.override_command() {
             let mut entrypoint_script_lines = vec![
                 "echo Container started".to_string(),
                 "trap \"exit 0\" 15".to_string(),
@@ -894,6 +892,8 @@ RUN sed -i -E 's/((^|\s)PATH=)([^\$]*)$/\1\${{PATH:-\3}}/g' /etc/profile || true
             ]);
 
             Some(entrypoint_script_lines.join("\n").trim().to_string())
+        } else {
+            None
         };
 
         let mut container_env = HashMap::new();
@@ -5150,7 +5150,7 @@ ENV DOCKER_BUILDKIT=1
             Some(vec!["seccomp=unconfined".to_string()])
         );
         assert_eq!(app_service.privileged, Some(true));
-        assert!(app_service.entrypoint.is_some());
+        assert!(app_service.entrypoint.is_none());
 
         let labels = app_service.labels.as_ref().unwrap();
         assert_eq!(