diff --git a/changelogs/fragments/1054-use-correct-flag-for-assume-yes.yaml b/changelogs/fragments/1054-use-correct-flag-for-assume-yes.yaml
new file mode 100644
index 00000000..d7423e61
--- /dev/null
+++ b/changelogs/fragments/1054-use-correct-flag-for-assume-yes.yaml
@@ -0,0 +1,2 @@
+bugfixes:
+  - docker_compose_v2 - rename flag for ``assume_yes`` parameter for ``docker compose up`` to ``-y`` (https://github.com/ansible-collections/community.docker/pull/1054).
diff --git a/plugins/modules/docker_compose_v2.py b/plugins/modules/docker_compose_v2.py
index acb1e9c3..369ff02e 100644
--- a/plugins/modules/docker_compose_v2.py
+++ b/plugins/modules/docker_compose_v2.py
@@ -162,7 +162,7 @@ options:
     version_added: 3.8.0
   assume_yes:
     description:
-      - When O(assume_yes=true), pass C(--yes) to assume "yes" as answer to all prompts and run non-interactively.
+      - When O(assume_yes=true), pass C(-y) to assume "yes" as answer to all prompts and run non-interactively.
       - Right now a prompt is asked whenever a non-matching volume should be re-created. O(assume_yes=false)
         results in the question being answered by "no", which will simply re-use the existing volume.
       - This option is only available on Docker Compose 2.32.0 or newer.
@@ -537,7 +537,8 @@ class ServicesManager(BaseComposeManager):
         if dry_run:
             args.append('--dry-run')
         if self.yes:
-            args.append('--yes')
+            # Note that the long form is '--y', and not '--yes' as one would expect. Since this looks like a bug we're using the short form.
+            args.append('-y')
         args.append('--')
         for service in self.services:
             args.append(service)