diff --git a/runner/actions-runner-dind-rootless.ubuntu-20.04.dockerfile b/runner/actions-runner-dind-rootless.ubuntu-20.04.dockerfile
index 1ee6f2b8..33d3c3d2 100644
--- a/runner/actions-runner-dind-rootless.ubuntu-20.04.dockerfile
+++ b/runner/actions-runner-dind-rootless.ubuntu-20.04.dockerfile
@@ -139,8 +139,12 @@ RUN export SKIP_IPTABLES=1 \
 RUN export ARCH=$(echo ${TARGETPLATFORM} | cut -d / -f2) \
     && if [ "$ARCH" = "arm64" ]; then export ARCH=aarch64 ; fi \
     && if [ "$ARCH" = "amd64" ] || [ "$ARCH" = "i386" ]; then export ARCH=x86_64 ; fi \
-    && curl -fLo /home/runner/bin/docker-compose https://github.com/docker/compose/releases/download/${DOCKER_COMPOSE_VERSION}/docker-compose-linux-${ARCH} \
-    && chmod +x /home/runner/bin/docker-compose
+    && mkdir -p /home/runner/.docker/cli-plugins \
+    && curl -fLo /home/runner/.docker/cli-plugins/docker-compose https://github.com/docker/compose/releases/download/${DOCKER_COMPOSE_VERSION}/docker-compose-linux-${ARCH} \
+    && chmod +x /home/runner/.docker/cli-plugins/docker-compose \
+    && ln -s /home/runner/.docker/cli-plugins/docker-compose /home/runner/bin/docker-compose \
+    && which docker-compose \
+    && docker compose version
 
 ENTRYPOINT ["/bin/bash", "-c"]
 CMD ["entrypoint-dind-rootless.sh"]
diff --git a/runner/actions-runner-dind-rootless.ubuntu-22.04.dockerfile b/runner/actions-runner-dind-rootless.ubuntu-22.04.dockerfile
index b5f02d90..3e35d183 100644
--- a/runner/actions-runner-dind-rootless.ubuntu-22.04.dockerfile
+++ b/runner/actions-runner-dind-rootless.ubuntu-22.04.dockerfile
@@ -116,9 +116,12 @@ RUN export SKIP_IPTABLES=1 \
 RUN export ARCH=$(echo ${TARGETPLATFORM} | cut -d / -f2) \
     && if [ "$ARCH" = "arm64" ]; then export ARCH=aarch64 ; fi \
     && if [ "$ARCH" = "amd64" ] || [ "$ARCH" = "i386" ]; then export ARCH=x86_64 ; fi \
-    && mkdir -p /home/runner/bin \
-    && curl -fLo /home/runner/bin/docker-compose https://github.com/docker/compose/releases/download/${DOCKER_COMPOSE_VERSION}/docker-compose-Linux-${ARCH} \
-    && chmod +x /home/runner/bin/docker-compose
+    && mkdir -p /home/runner/.docker/cli-plugins \
+    && curl -fLo /home/runner/.docker/cli-plugins/docker-compose https://github.com/docker/compose/releases/download/${DOCKER_COMPOSE_VERSION}/docker-compose-linux-${ARCH} \
+    && chmod +x /home/runner/.docker/cli-plugins/docker-compose \
+    && ln -s /home/runner/.docker/cli-plugins/docker-compose /home/runner/bin/docker-compose \
+    && which docker-compose \
+    && docker compose version
 
 ENTRYPOINT ["/bin/bash", "-c"]
 CMD ["entrypoint-dind-rootless.sh"]
diff --git a/runner/actions-runner-dind.ubuntu-20.04.dockerfile b/runner/actions-runner-dind.ubuntu-20.04.dockerfile
index da19b4b8..053ccc1c 100644
--- a/runner/actions-runner-dind.ubuntu-20.04.dockerfile
+++ b/runner/actions-runner-dind.ubuntu-20.04.dockerfile
@@ -106,8 +106,12 @@ RUN set -vx; \
 RUN export ARCH=$(echo ${TARGETPLATFORM} | cut -d / -f2) \
     && if [ "$ARCH" = "arm64" ]; then export ARCH=aarch64 ; fi \
     && if [ "$ARCH" = "amd64" ] || [ "$ARCH" = "i386" ]; then export ARCH=x86_64 ; fi \
-    && curl -fLo /usr/bin/docker-compose https://github.com/docker/compose/releases/download/${DOCKER_COMPOSE_VERSION}/docker-compose-linux-${ARCH} \
-    && chmod +x /usr/bin/docker-compose
+    && mkdir -p /usr/libexec/docker/cli-plugins \
+    && curl -fLo /usr/libexec/docker/cli-plugins/docker-compose https://github.com/docker/compose/releases/download/${DOCKER_COMPOSE_VERSION}/docker-compose-linux-${ARCH} \
+    && chmod +x /usr/libexec/docker/cli-plugins/docker-compose \
+    && ln -s /usr/libexec/docker/cli-plugins/docker-compose /usr/bin/docker-compose \
+    && which docker-compose \
+    && docker compose version
 
 # We place the scripts in `/usr/bin` so that users who extend this image can
 # override them with scripts of the same name placed in `/usr/local/bin`.
diff --git a/runner/actions-runner-dind.ubuntu-22.04.dockerfile b/runner/actions-runner-dind.ubuntu-22.04.dockerfile
index 3532f2a5..6ee33dd2 100644
--- a/runner/actions-runner-dind.ubuntu-22.04.dockerfile
+++ b/runner/actions-runner-dind.ubuntu-22.04.dockerfile
@@ -82,8 +82,12 @@ RUN set -vx; \
 RUN export ARCH=$(echo ${TARGETPLATFORM} | cut -d / -f2) \
     && if [ "$ARCH" = "arm64" ]; then export ARCH=aarch64 ; fi \
     && if [ "$ARCH" = "amd64" ] || [ "$ARCH" = "i386" ]; then export ARCH=x86_64 ; fi \
-    && curl -fLo /usr/bin/docker-compose https://github.com/docker/compose/releases/download/${DOCKER_COMPOSE_VERSION}/docker-compose-linux-${ARCH} \
-    && chmod +x /usr/bin/docker-compose
+    && mkdir -p /usr/libexec/docker/cli-plugins \
+    && curl -fLo /usr/libexec/docker/cli-plugins/docker-compose https://github.com/docker/compose/releases/download/${DOCKER_COMPOSE_VERSION}/docker-compose-linux-${ARCH} \
+    && chmod +x /usr/libexec/docker/cli-plugins/docker-compose \
+    && ln -s /usr/libexec/docker/cli-plugins/docker-compose /usr/bin/docker-compose \
+    && which docker-compose \
+    && docker compose version
 
 # We place the scripts in `/usr/bin` so that users who extend this image can
 # override them with scripts of the same name placed in `/usr/local/bin`.
diff --git a/runner/actions-runner.ubuntu-20.04.dockerfile b/runner/actions-runner.ubuntu-20.04.dockerfile
index 5c246a0c..83d55bba 100644
--- a/runner/actions-runner.ubuntu-20.04.dockerfile
+++ b/runner/actions-runner.ubuntu-20.04.dockerfile
@@ -103,8 +103,12 @@ RUN set -vx; \
 RUN export ARCH=$(echo ${TARGETPLATFORM} | cut -d / -f2) \
     && if [ "$ARCH" = "arm64" ]; then export ARCH=aarch64 ; fi \
     && if [ "$ARCH" = "amd64" ] || [ "$ARCH" = "i386" ]; then export ARCH=x86_64 ; fi \
-    && curl -fLo /usr/bin/docker-compose https://github.com/docker/compose/releases/download/${DOCKER_COMPOSE_VERSION}/docker-compose-linux-${ARCH} \
-    && chmod +x /usr/bin/docker-compose
+    && mkdir -p /usr/libexec/docker/cli-plugins \
+    && curl -fLo /usr/libexec/docker/cli-plugins/docker-compose https://github.com/docker/compose/releases/download/${DOCKER_COMPOSE_VERSION}/docker-compose-linux-${ARCH} \
+    && chmod +x /usr/libexec/docker/cli-plugins/docker-compose \
+    && ln -s /usr/libexec/docker/cli-plugins/docker-compose /usr/bin/docker-compose \
+    && which docker-compose \
+    && docker compose version
 
 # We place the scripts in `/usr/bin` so that users who extend this image can
 # override them with scripts of the same name placed in `/usr/local/bin`.
diff --git a/runner/actions-runner.ubuntu-22.04.dockerfile b/runner/actions-runner.ubuntu-22.04.dockerfile
index 966856fb..28a61eb8 100644
--- a/runner/actions-runner.ubuntu-22.04.dockerfile
+++ b/runner/actions-runner.ubuntu-22.04.dockerfile
@@ -80,8 +80,12 @@ RUN set -vx; \
 RUN export ARCH=$(echo ${TARGETPLATFORM} | cut -d / -f2) \
     && if [ "$ARCH" = "arm64" ]; then export ARCH=aarch64 ; fi \
     && if [ "$ARCH" = "amd64" ] || [ "$ARCH" = "i386" ]; then export ARCH=x86_64 ; fi \
-    && curl -fLo /usr/bin/docker-compose https://github.com/docker/compose/releases/download/${DOCKER_COMPOSE_VERSION}/docker-compose-linux-${ARCH} \
-    && chmod +x /usr/bin/docker-compose
+    && mkdir -p /usr/libexec/docker/cli-plugins \
+    && curl -fLo /usr/libexec/docker/cli-plugins/docker-compose https://github.com/docker/compose/releases/download/${DOCKER_COMPOSE_VERSION}/docker-compose-linux-${ARCH} \
+    && chmod +x /usr/libexec/docker/cli-plugins/docker-compose \
+    && ln -s /usr/libexec/docker/cli-plugins/docker-compose /usr/bin/docker-compose \
+    && which docker-compose \
+    && docker compose version
 
 # We place the scripts in `/usr/bin` so that users who extend this image can
 # override them with scripts of the same name placed in `/usr/local/bin`.
diff --git a/test/e2e/e2e_test.go b/test/e2e/e2e_test.go
index f6681558..ef925ccc 100644
--- a/test/e2e/e2e_test.go
+++ b/test/e2e/e2e_test.go
@@ -1081,6 +1081,17 @@ func installActionsWorkflow(t *testing.T, testName, runnerLabel, testResultCMNam
 					},
 				},
 			)
+
+			// Ensure both the alias and the full command work after
+			// https://github.com/actions/actions-runner-controller/pull/2326
+			steps = append(steps,
+				testing.Step{
+					Run: "docker-compose version",
+				},
+				testing.Step{
+					Run: "docker compose version",
+				},
+			)
 		}
 
 		steps = append(steps,