diff --git a/internal/services/config.go b/internal/services/config.go
index d32e6598842..4d40175d004 100644
--- a/internal/services/config.go
+++ b/internal/services/config.go
@@ -82,3 +82,21 @@ func lookupProcessCompose(projectDir, path string) string {
 
 	return ""
 }
+
+// LookupProcessComposeOverride finds the process-compose override file in the given directory.
+// process-compose supports override files that are merged with the base configuration.
+// See: https://f1bonacc1.github.io/process-compose/merge/
+func LookupProcessComposeOverride(projectDir string) string {
+	overrideFiles := []string{
+		filepath.Join(projectDir, "process-compose.override.yaml"),
+		filepath.Join(projectDir, "process-compose.override.yml"),
+	}
+
+	for _, p := range overrideFiles {
+		if fi, err := os.Stat(p); err == nil && !fi.IsDir() {
+			return p
+		}
+	}
+
+	return ""
+}
diff --git a/internal/services/config_test.go b/internal/services/config_test.go
new file mode 100644
index 00000000000..94590188cfc
--- /dev/null
+++ b/internal/services/config_test.go
@@ -0,0 +1,72 @@
+// Copyright 2024 Jetify Inc. and contributors. All rights reserved.
+// Use of this source code is governed by the license in the LICENSE file.
+
+package services
+
+import (
+	"os"
+	"path/filepath"
+	"testing"
+)
+
+func TestLookupProcessComposeOverride(t *testing.T) {
+	tests := []struct {
+		name         string
+		files        []string
+		wantFileName string
+	}{
+		{
+			name:         "no override file",
+			files:        []string{},
+			wantFileName: "",
+		},
+		{
+			name:         "yaml override",
+			files:        []string{"process-compose.override.yaml"},
+			wantFileName: "process-compose.override.yaml",
+		},
+		{
+			name:         "yml override",
+			files:        []string{"process-compose.override.yml"},
+			wantFileName: "process-compose.override.yml",
+		},
+		{
+			name:         "yaml takes precedence over yml",
+			files:        []string{"process-compose.override.yaml", "process-compose.override.yml"},
+			wantFileName: "process-compose.override.yaml",
+		},
+		{
+			name:         "ignores non-override files",
+			files:        []string{"process-compose.yaml", "other.yaml"},
+			wantFileName: "",
+		},
+	}
+
+	for _, testCase := range tests {
+		t.Run(testCase.name, func(t *testing.T) {
+			// Create temp directory
+			tempDir := t.TempDir()
+
+			// Create test files
+			for _, f := range testCase.files {
+				path := filepath.Join(tempDir, f)
+				if err := os.WriteFile(path, []byte("# test"), 0644); err != nil {
+					t.Fatalf("Failed to create test file %s: %v", f, err)
+				}
+			}
+
+			got := LookupProcessComposeOverride(tempDir)
+
+			if testCase.wantFileName == "" {
+				if got != "" {
+					t.Errorf("LookupProcessComposeOverride() = %q, want empty string", got)
+				}
+			} else {
+				want := filepath.Join(tempDir, testCase.wantFileName)
+				if got != want {
+					t.Errorf("LookupProcessComposeOverride() = %q, want %q", got, want)
+				}
+			}
+		})
+	}
+}
diff --git a/internal/services/manager.go b/internal/services/manager.go
index 1f5b379686b..bb6699d73bc 100644
--- a/internal/services/manager.go
+++ b/internal/services/manager.go
@@ -154,6 +154,13 @@ func StartProcessManager(
 		flags = append(flags, "-f", s.ProcessComposePath)
 	}
 
+	// Add override file if it exists. Override files are merged with base configuration
+	// and allow individual developers to customize their local development environment.
+	// See: https://f1bonacc1.github.io/process-compose/merge/
+	if overrideFile := LookupProcessComposeOverride(projectDir); overrideFile != "" {
+		flags = append(flags, "-f", overrideFile)
+	}
+
 	flags = append(flags, processComposeConfig.ExtraFlags...)
 
 	if processComposeConfig.Background {