diff --git a/changelogs/fragments/163-docker_compose-timeout-fix.yml b/changelogs/fragments/163-docker_compose-timeout-fix.yml
new file mode 100644
index 00000000..492185d9
--- /dev/null
+++ b/changelogs/fragments/163-docker_compose-timeout-fix.yml
@@ -0,0 +1,4 @@
+---
+breaking_changes:
+  - docker_compose - fixed ``timeout`` defaulting behavior so that ``stop_grace_period``, if defined in the compose
+    file, will be used if `timeout`` is not specified (https://github.com/ansible-collections/community.docker/pull/163).
diff --git a/plugins/modules/docker_compose.py b/plugins/modules/docker_compose.py
index 8b42e887..b3cc12f4 100644
--- a/plugins/modules/docker_compose.py
+++ b/plugins/modules/docker_compose.py
@@ -163,8 +163,10 @@ options:
   timeout:
     description:
       - Timeout in seconds for container shutdown when attached or when containers are already running.
+      - By default C(compose) will use a C(10s) timeout unless C(default_grace_period) is defined for a
+        particular service in the I(project_src).
     type: int
-    default: 10
+    default: null
   use_ssh_client:
     description:
       - Currently ignored for this module, but might suddenly be supported later on.
@@ -495,14 +497,13 @@ try:
     from compose.cli.command import project_from_options
     from compose.service import NoSuchImageError
     from compose.cli.main import convergence_strategy_from_opts, build_action_from_opts, image_type_from_opt
-    from compose.const import DEFAULT_TIMEOUT, LABEL_SERVICE, LABEL_PROJECT, LABEL_ONE_OFF
+    from compose.const import LABEL_SERVICE, LABEL_PROJECT, LABEL_ONE_OFF
     HAS_COMPOSE = True
     HAS_COMPOSE_EXC = None
     MINIMUM_COMPOSE_VERSION = '1.7.0'
 except ImportError as dummy:
     HAS_COMPOSE = False
     HAS_COMPOSE_EXC = traceback.format_exc()
-    DEFAULT_TIMEOUT = 10
 
 from ansible.module_utils.common.text.converters import to_native
 
@@ -1177,7 +1178,7 @@ def main():
         pull=dict(type='bool', default=False),
         nocache=dict(type='bool', default=False),
         debug=dict(type='bool', default=False),
-        timeout=dict(type='int', default=DEFAULT_TIMEOUT)
+        timeout=dict(type='int')
     )
 
     mutually_exclusive = [