diff --git a/cli/compose/template/template.go b/cli/compose/template/template.go
index 81d579078f..1762ab11a9 100644
--- a/cli/compose/template/template.go
+++ b/cli/compose/template/template.go
@@ -14,7 +14,7 @@ var patternString = fmt.Sprintf(
 	delimiter, delimiter, substitution, substitution,
 )
 
-var pattern = regexp.MustCompile(patternString)
+var defaultPattern = regexp.MustCompile(patternString)
 
 // DefaultSubstituteFuncs contains the default SubstitueFunc used by the docker cli
 var DefaultSubstituteFuncs = []SubstituteFunc{
@@ -51,7 +51,7 @@ func SubstituteWith(template string, mapping Mapping, pattern *regexp.Regexp, su
 	var err error
 	result := pattern.ReplaceAllStringFunc(template, func(substring string) string {
 		matches := pattern.FindStringSubmatch(substring)
-		groups := matchGroups(matches)
+		groups := matchGroups(matches, pattern)
 		if escaped := groups["escaped"]; escaped != "" {
 			return escaped
 		}
@@ -90,26 +90,31 @@ func SubstituteWith(template string, mapping Mapping, pattern *regexp.Regexp, su
 
 // Substitute variables in the string with their values
 func Substitute(template string, mapping Mapping) (string, error) {
-	return SubstituteWith(template, mapping, pattern, DefaultSubstituteFuncs...)
+	return SubstituteWith(template, mapping, defaultPattern, DefaultSubstituteFuncs...)
 }
 
 // ExtractVariables returns a map of all the variables defined in the specified
 // composefile (dict representation) and their default value if any.
-func ExtractVariables(configDict map[string]interface{}) map[string]string {
-	return recurseExtract(configDict)
+func ExtractVariables(configDict map[string]interface{}, pattern *regexp.Regexp) map[string]string {
+	if pattern == nil {
+		pattern = defaultPattern
+	}
+	return recurseExtract(configDict, pattern)
 }
 
-func recurseExtract(value interface{}) map[string]string {
+func recurseExtract(value interface{}, pattern *regexp.Regexp) map[string]string {
 	m := map[string]string{}
 
 	switch value := value.(type) {
 	case string:
-		if v, is := extractVariable(value); is {
-			m[v.name] = v.value
+		if values, is := extractVariable(value, pattern); is {
+			for _, v := range values {
+				m[v.name] = v.value
+			}
 		}
 	case map[string]interface{}:
 		for _, elem := range value {
-			submap := recurseExtract(elem)
+			submap := recurseExtract(elem, pattern)
 			for key, value := range submap {
 				m[key] = value
 			}
@@ -117,8 +122,10 @@ func recurseExtract(value interface{}) map[string]string {
 
 	case []interface{}:
 		for _, elem := range value {
-			if v, is := extractVariable(elem); is {
-				m[v.name] = v.value
+			if values, is := extractVariable(elem, pattern); is {
+				for _, v := range values {
+					m[v.name] = v.value
+				}
 			}
 		}
 	}
@@ -131,36 +138,40 @@ type extractedValue struct {
 	value string
 }
 
-func extractVariable(value interface{}) (extractedValue, bool) {
+func extractVariable(value interface{}, pattern *regexp.Regexp) ([]extractedValue, bool) {
 	sValue, ok := value.(string)
 	if !ok {
-		return extractedValue{}, false
+		return []extractedValue{}, false
 	}
-	matches := pattern.FindStringSubmatch(sValue)
+	matches := pattern.FindAllStringSubmatch(sValue, -1)
 	if len(matches) == 0 {
-		return extractedValue{}, false
+		return []extractedValue{}, false
 	}
-	groups := matchGroups(matches)
-	if escaped := groups["escaped"]; escaped != "" {
-		return extractedValue{}, false
+	values := []extractedValue{}
+	for _, match := range matches {
+		groups := matchGroups(match, pattern)
+		if escaped := groups["escaped"]; escaped != "" {
+			continue
+		}
+		val := groups["named"]
+		if val == "" {
+			val = groups["braced"]
+		}
+		name := val
+		var defaultValue string
+		switch {
+		case strings.Contains(val, ":?"):
+			name, _ = partition(val, ":?")
+		case strings.Contains(val, "?"):
+			name, _ = partition(val, "?")
+		case strings.Contains(val, ":-"):
+			name, defaultValue = partition(val, ":-")
+		case strings.Contains(val, "-"):
+			name, defaultValue = partition(val, "-")
+		}
+		values = append(values, extractedValue{name: name, value: defaultValue})
 	}
-	val := groups["named"]
-	if val == "" {
-		val = groups["braced"]
-	}
-	name := val
-	var defaultValue string
-	switch {
-	case strings.Contains(val, ":?"):
-		name, _ = partition(val, ":?")
-	case strings.Contains(val, "?"):
-		name, _ = partition(val, "?")
-	case strings.Contains(val, ":-"):
-		name, defaultValue = partition(val, ":-")
-	case strings.Contains(val, "-"):
-		name, defaultValue = partition(val, "-")
-	}
-	return extractedValue{name: name, value: defaultValue}, true
+	return values, len(values) > 0
 }
 
 // Soft default (fall back if unset or empty)
@@ -207,7 +218,7 @@ func withRequired(substitution string, mapping Mapping, sep string, valid func(s
 	return value, true, nil
 }
 
-func matchGroups(matches []string) map[string]string {
+func matchGroups(matches []string, pattern *regexp.Regexp) map[string]string {
 	groups := make(map[string]string)
 	for i, name := range pattern.SubexpNames()[1:] {
 		groups[name] = matches[i+1]
diff --git a/cli/compose/template/template_test.go b/cli/compose/template/template_test.go
index 48c588c702..abbc810c3c 100644
--- a/cli/compose/template/template_test.go
+++ b/cli/compose/template/template_test.go
@@ -161,15 +161,15 @@ func TestSubstituteWithCustomFunc(t *testing.T) {
 		return value, true, nil
 	}
 
-	result, err := SubstituteWith("ok ${FOO}", defaultMapping, pattern, errIsMissing)
+	result, err := SubstituteWith("ok ${FOO}", defaultMapping, defaultPattern, errIsMissing)
 	assert.NilError(t, err)
 	assert.Check(t, is.Equal("ok first", result))
 
-	result, err = SubstituteWith("ok ${BAR}", defaultMapping, pattern, errIsMissing)
+	result, err = SubstituteWith("ok ${BAR}", defaultMapping, defaultPattern, errIsMissing)
 	assert.NilError(t, err)
 	assert.Check(t, is.Equal("ok ", result))
 
-	_, err = SubstituteWith("ok ${NOTHERE}", defaultMapping, pattern, errIsMissing)
+	_, err = SubstituteWith("ok ${NOTHERE}", defaultMapping, defaultPattern, errIsMissing)
 	assert.Check(t, is.ErrorContains(err, "required variable"))
 }
 
@@ -245,18 +245,21 @@ func TestExtractVariables(t *testing.T) {
 				},
 				"baz": []interface{}{
 					"foo",
+					"$docker:${project:-cli}",
 					"$toto",
 				},
 			},
 			expected: map[string]string{
-				"bar":   "foo",
-				"fruit": "banana",
-				"toto":  "",
+				"bar":     "foo",
+				"fruit":   "banana",
+				"toto":    "",
+				"docker":  "",
+				"project": "cli",
 			},
 		},
 	}
 	for _, tc := range testCases {
-		actual := ExtractVariables(tc.dict)
+		actual := ExtractVariables(tc.dict, defaultPattern)
 		assert.Check(t, is.DeepEqual(actual, tc.expected))
 	}
 }