diff --git a/changelogs/fragments/826-docker-compose-v2-version.yml b/changelogs/fragments/826-docker-compose-v2-version.yml
new file mode 100644
index 00000000..670d0107
--- /dev/null
+++ b/changelogs/fragments/826-docker-compose-v2-version.yml
@@ -0,0 +1,2 @@
+bugfixes:
+  - "docker_compose_v2* modules - abort with a nice error message instead of crash when the Docker Compose CLI plugin version is ``dev`` (https://github.com/ansible-collections/community.docker/issues/825, https://github.com/ansible-collections/community.docker/pull/826)."
diff --git a/plugins/module_utils/compose_v2.py b/plugins/module_utils/compose_v2.py
index 92f10926..dfe4df47 100644
--- a/plugins/module_utils/compose_v2.py
+++ b/plugins/module_utils/compose_v2.py
@@ -516,6 +516,12 @@ class BaseComposeManager(DockerBaseClass):
         compose = self.client.get_client_plugin_info('compose')
         if compose is None:
             self.client.fail('Docker CLI {0} does not have the compose plugin installed'.format(self.client.get_cli()))
+        if compose['Version'] == 'dev':
+            self.client.fail(
+                'Docker CLI {0} has a compose plugin installed, but it reports version "dev".'
+                ' Please use a version of the plugin that returns a proper version.'
+                .format(self.client.get_cli())
+            )
         compose_version = compose['Version'].lstrip('v')
         self.compose_version = LooseVersion(compose_version)
         if self.compose_version < LooseVersion(min_version):