diff --git a/src/spec-node/containerFeatures.ts b/src/spec-node/containerFeatures.ts
index 2c7c987be..21649f10a 100644
--- a/src/spec-node/containerFeatures.ts
+++ b/src/spec-node/containerFeatures.ts
@@ -28,7 +28,7 @@ export const getSafeId = (str: string) => str
 	.replace(/^[\d_]+/g, '_')
 	.toUpperCase();
 
-export async function extendImage(params: DockerResolverParameters, config: SubstitutedConfig<DevContainerConfig>, imageName: string, additionalFeatures: Record<string, string | boolean | Record<string, string | boolean>>, canAddLabelsToContainer: boolean) {
+export async function extendImage(params: DockerResolverParameters, config: SubstitutedConfig<DevContainerConfig>, imageName: string, additionalImageNames: string[], additionalFeatures: Record<string, string | boolean | Record<string, string | boolean>>, canAddLabelsToContainer: boolean) {
 	const { common } = params;
 	const { cliHost, output } = common;
 
@@ -36,6 +36,13 @@ export async function extendImage(params: DockerResolverParameters, config: Subs
 	const extendImageDetails = await getExtendImageBuildInfo(params, config, imageName, imageBuildInfo, undefined, additionalFeatures, canAddLabelsToContainer);
 	if (!extendImageDetails?.featureBuildInfo) {
 		// no feature extensions - return
+		if (additionalImageNames.length) {
+			if (params.isTTY) {
+				await Promise.all(additionalImageNames.map(name => dockerPtyCLI(params, 'tag', imageName, name)));
+			} else {
+				await Promise.all(additionalImageNames.map(name => dockerCLI(params, 'tag', imageName, name)));
+			}
+		}
 		return {
 			updatedImageName: [imageName],
 			imageMetadata: getDevcontainerMetadata(imageBuildInfo.metadata, config, extendImageDetails?.featuresConfig),
@@ -99,6 +106,7 @@ export async function extendImage(params: DockerResolverParameters, config: Subs
 	args.push(
 		'--target', featureBuildInfo.overrideTarget,
 		'-t', updatedImageName,
+		...additionalImageNames.map(name => ['-t', name]).flat(),
 		'-f', dockerfilePath,
 		emptyTempDir
 	);
diff --git a/src/spec-node/devContainersSpecCLI.ts b/src/spec-node/devContainersSpecCLI.ts
index 0b04f4fb0..701505b98 100644
--- a/src/spec-node/devContainersSpecCLI.ts
+++ b/src/spec-node/devContainersSpecCLI.ts
@@ -16,7 +16,7 @@ import { ContainerError } from '../spec-common/errors';
 import { Log, LogDimensions, LogLevel, makeLog, mapLogLevel } from '../spec-utils/log';
 import { probeRemoteEnv, runLifecycleHooks, runRemoteCommand, UserEnvProbe, setupInContainer } from '../spec-common/injectHeadless';
 import { extendImage } from './containerFeatures';
-import { DockerCLIParameters, dockerPtyCLI, inspectContainer } from '../spec-shutdown/dockerUtils';
+import { dockerCLI, DockerCLIParameters, dockerPtyCLI, inspectContainer } from '../spec-shutdown/dockerUtils';
 import { buildAndExtendDockerCompose, dockerComposeCLIConfig, getDefaultImageName, getProjectName, readDockerComposeConfig, readVersionPrefix } from './dockerCompose';
 import { DevContainerFromDockerComposeConfig, DevContainerFromDockerfileConfig, getDockerComposeFilePaths } from '../spec-configuration/configuration';
 import { workspaceFromPath } from '../spec-utils/workspaces';
@@ -583,7 +583,7 @@ async function doBuild({
 			omitSyntaxDirective,
 		}, disposables);
 
-		const { common, dockerCLI, dockerComposeCLI } = params;
+		const { common, dockerComposeCLI } = params;
 		const { cliHost, env, output } = common;
 		const workspace = workspaceFromPath(cliHost.path, workspaceFolder);
 		const configPath = configFile ? configFile : workspace
@@ -602,7 +602,7 @@ async function doBuild({
 			throw new ContainerError({ description: '--push true cannot be used with --output.' });
 		}
 
-		const buildParams: DockerCLIParameters = { cliHost, dockerCLI, dockerComposeCLI, env, output, platformInfo: params.platformInfo };
+		const buildParams: DockerCLIParameters = { cliHost, dockerCLI: params.dockerCLI, dockerComposeCLI, env, output, platformInfo: params.platformInfo };
 		await ensureNoDisallowedFeatures(buildParams, config, additionalFeatures, undefined);
 
 		// Support multiple use of `--image-name`
@@ -614,9 +614,6 @@ async function doBuild({
 			let { updatedImageName } = await buildNamedImageAndExtend(params, configWithRaw as SubstitutedConfig<DevContainerFromDockerfileConfig>, additionalFeatures, false, imageNames);
 
 			if (imageNames) {
-				if (!buildxPush && !buildxOutput) {
-					await Promise.all(imageNames.map(imageName => dockerPtyCLI(params, 'tag', updatedImageName[0], imageName)));
-				}
 				imageNameResult = imageNames;
 			} else {
 				imageNameResult = updatedImageName;
@@ -660,7 +657,12 @@ async function doBuild({
 			const originalImageName = overrideImageName || service.image || getDefaultImageName(await buildParams.dockerComposeCLI(), projectName, config.service);
 
 			if (imageNames) {
-				await Promise.all(imageNames.map(imageName => dockerPtyCLI(params, 'tag', originalImageName, imageName)));
+				// Future improvement: Compose 2.6.0 (released 2022-05-30) added `tags` to the compose file.
+				if (params.isTTY) {
+					await Promise.all(imageNames.map(imageName => dockerPtyCLI(params, 'tag', originalImageName, imageName)));
+				} else {
+					await Promise.all(imageNames.map(imageName => dockerCLI(params, 'tag', originalImageName, imageName)));
+				}
 				imageNameResult = imageNames;
 			} else {
 				imageNameResult = originalImageName;
@@ -672,10 +674,9 @@ async function doBuild({
 			}
 
 			await inspectDockerImage(params, config.image, true);
-			const { updatedImageName } = await extendImage(params, configWithRaw, config.image, additionalFeatures, false);
+			const { updatedImageName } = await extendImage(params, configWithRaw, config.image, imageNames || [], additionalFeatures, false);
 
 			if (imageNames) {
-				await Promise.all(imageNames.map(imageName => dockerPtyCLI(params, 'tag', updatedImageName[0], imageName)));
 				imageNameResult = imageNames;
 			} else {
 				imageNameResult = updatedImageName;
diff --git a/src/spec-node/singleContainer.ts b/src/spec-node/singleContainer.ts
index 5d35c3e06..0ff7e9a75 100644
--- a/src/spec-node/singleContainer.ts
+++ b/src/spec-node/singleContainer.ts
@@ -126,7 +126,7 @@ export async function buildNamedImageAndExtend(params: DockerResolverParameters,
 		return await buildAndExtendImage(params, configWithRaw as SubstitutedConfig<DevContainerFromDockerfileConfig>, imageNames, params.buildNoCache ?? false, additionalFeatures);
 	}
 	// image-based dev container - extend
-	return await extendImage(params, configWithRaw, imageNames[0], additionalFeatures, canAddLabelsToContainer);
+	return await extendImage(params, configWithRaw, imageNames[0], argImageNames || [], additionalFeatures, canAddLabelsToContainer);
 }
 
 async function buildAndExtendImage(buildParams: DockerResolverParameters, configWithRaw: SubstitutedConfig<DevContainerFromDockerfileConfig>, baseImageNames: string[], noCache: boolean, additionalFeatures: Record<string, string | boolean | Record<string, string | boolean>>) {
diff --git a/src/test/cli.build.test.ts b/src/test/cli.build.test.ts
index 446cc25a7..d8df77e04 100644
--- a/src/test/cli.build.test.ts
+++ b/src/test/cli.build.test.ts
@@ -153,33 +153,39 @@ describe('Dev Containers CLI', function () {
 			const testFolder = `${__dirname}/configs/dockerfile-with-features`;
 			const image1 = 'image-1';
 			const image2 = 'image-2';
+			await shellExec(`docker rmi -f ${image1} ${image2}`);
 			const res = await shellExec(`${cli} build --workspace-folder ${testFolder} --image-name ${image1} --image-name ${image2}`);
 			const response = JSON.parse(res.stdout);
 			assert.equal(response.outcome, 'success');
 			assert.equal(response.imageName[0], image1);
 			assert.equal(response.imageName[1], image2);
+			await shellExec(`docker inspect --type image ${image1} ${image2}`);
 		});
 
 		it('should succeed with multiple --image-name parameters when dockerComposeFile is present', async () => {
 			const testFolder = `${__dirname}/configs/compose-Dockerfile-alpine`;
 			const image1 = 'image-1';
 			const image2 = 'image-2';
+			await shellExec(`docker rmi -f ${image1} ${image2}`);
 			const res = await shellExec(`${cli} build --workspace-folder ${testFolder} --image-name ${image1} --image-name ${image2}`);
 			const response = JSON.parse(res.stdout);
 			assert.equal(response.outcome, 'success');
 			assert.equal(response.imageName[0], image1);
 			assert.equal(response.imageName[1], image2);
+			await shellExec(`docker inspect --type image ${image1} ${image2}`);
 		});
 
 		it('should succeed with multiple --image-name parameters when image is present', async () => {
 			const testFolder = `${__dirname}/configs/image`;
 			const image1 = 'image-1';
 			const image2 = 'image-2';
+			await shellExec(`docker rmi -f ${image1} ${image2}`);
 			const res = await shellExec(`${cli} build --workspace-folder ${testFolder} --image-name ${image1} --image-name ${image2}`);
 			const response = JSON.parse(res.stdout);
 			assert.equal(response.outcome, 'success');
 			assert.equal(response.imageName[0], image1);
 			assert.equal(response.imageName[1], image2);
+			await shellExec(`docker inspect --type image ${image1} ${image2}`);
 		});
 
 		it('should fail with --push true and --output', async () => {