diff --git a/README.md b/README.md
index eb05f1d..b4b34a0 100644
--- a/README.md
+++ b/README.md
@@ -143,7 +143,7 @@ export default {
 
 Operational defaults:
 
-- `project`: current working directory name
+- `project`: Compose top-level `name`, falling back to the current working directory name
 - `composeFile`: the first recognized Compose filename in the working directory
 - `registry`: `registry.neko-piranha.ts.net`
 - `builders.amd64`: `kuber@astral-th`
@@ -151,6 +151,9 @@ Operational defaults:
 - `builders.remoteRoot`: `kuber-build`
 - `rolloutTimeoutMs`: `300000`
 
+Project-name precedence is `.kuberrc.ts project`, Compose top-level `name`, then
+the current working directory name.
+
 Configuration hooks can be synchronous or asynchronous and receive mutable
 values:
 
diff --git a/command/main.ts b/command/main.ts
index 4c7ffc7..701a5c6 100644
--- a/command/main.ts
+++ b/command/main.ts
@@ -15,7 +15,7 @@ import { up } from "./up";
 export const main = defineCommand({
   meta: {
     name: "kuber",
-    version: "1.2.0",
+    version: "1.2.1",
     description: "Docker Compose -> K8s translation layer",
   },
   args: {
diff --git a/lib/config.ts b/lib/config.ts
index dcb4bdd..cc4c113 100644
--- a/lib/config.ts
+++ b/lib/config.ts
@@ -20,6 +20,7 @@ type Hooks = Pick<
 
 export type ResolvedKuberConfig = Hooks & {
   project: string;
+  projectConfigured: boolean;
   composeFile?: string;
   registry: string;
   builders: {
@@ -157,6 +158,7 @@ export async function loadConfig(
 
   return {
     project: raw.project?.trim() ?? basename(cwd),
+    projectConfigured: raw.project !== undefined,
     composeFile: composeFile
       ? isAbsolute(composeFile)
         ? composeFile
diff --git a/lib/context.ts b/lib/context.ts
index 2ff5a5c..aca4bd4 100644
--- a/lib/context.ts
+++ b/lib/context.ts
@@ -15,6 +15,14 @@ type AppContext = {
 
 const appContext = new AsyncLocalStorage<AppContext>();
 
+export function resolveProjectName(
+  config: Pick<ResolvedKuberConfig, "project" | "projectConfigured">,
+  compose: ComposeSpecification,
+): string {
+  if (config.projectConfigured) return config.project;
+  return compose.name?.trim() || config.project;
+}
+
 export async function provideContext<T>(
   fn: () => T,
   configPath?: string,
@@ -26,6 +34,19 @@ export async function provideContext<T>(
       ? Promise.resolve(config.composeFile)
       : resolveComposeFile(cwd),
   );
+  const parsedCompose = createCachedGetter("parsedCompose", async () => {
+    const composeFile = await path();
+    if (!composeFile) throw new Error("Compose file cannot be found");
+    return readCompose(composeFile);
+  });
+
+  if (!config.projectConfigured) {
+    const composeFile = await path();
+    if (composeFile) {
+      config.project = resolveProjectName(config, await parsedCompose());
+    }
+  }
+
   const getHookContext = createCachedGetter("hookContext", async () => {
     const composeFile = await path();
     if (!composeFile) throw new Error("Compose file cannot be found");
@@ -33,7 +54,7 @@ export async function provideContext<T>(
   });
   const compose = createCachedGetter("compose", async () => {
     const context = await getHookContext();
-    const value = await readCompose(context.composeFile);
+    const value = await parsedCompose();
     await config.compose?.(value, context);
     return value;
   });
diff --git a/package.json b/package.json
index f6395d0..c8ca910 100644
--- a/package.json
+++ b/package.json
@@ -1,6 +1,6 @@
 {
   "name": "@dmgnr/kuber",
-  "version": "1.2.0",
+  "version": "1.2.1",
   "description": "Docker Compose to Kubernetes translation layer",
   "bin": {
     "kuber": "dist/index.js"
diff --git a/tests/lib/core.test.ts b/tests/lib/core.test.ts
index 29d0a97..1ec2f04 100644
--- a/tests/lib/core.test.ts
+++ b/tests/lib/core.test.ts
@@ -7,7 +7,7 @@ import {
   resolveComposeArch,
   withComposeArch,
 } from "../../lib/arch";
-import { createCachedGetter, ctx } from "../../lib/context";
+import { createCachedGetter, ctx, resolveProjectName } from "../../lib/context";
 import { toEnvVars, toTable } from "../../lib/format";
 import { deepMerge, getPodContainerName, throwWhen } from "../../lib/shared";
 
@@ -131,6 +131,27 @@ describe("shared helpers", () => {
 });
 
 describe("context helpers", () => {
+  test("resolves project names using config, Compose, then directory precedence", () => {
+    expect(
+      resolveProjectName(
+        { project: "directory", projectConfigured: false },
+        { name: "compose" },
+      ),
+    ).toBe("compose");
+    expect(
+      resolveProjectName(
+        { project: "config", projectConfigured: true },
+        { name: "compose" },
+      ),
+    ).toBe("config");
+    expect(
+      resolveProjectName(
+        { project: "directory", projectConfigured: false },
+        {},
+      ),
+    ).toBe("directory");
+  });
+
   test("rejects access outside an application context", () => {
     expect(() => ctx()).toThrow("Not in context");
   });
diff --git a/tests/lib/yaml.test.ts b/tests/lib/yaml.test.ts
index 9a4598e..eabbe05 100644
--- a/tests/lib/yaml.test.ts
+++ b/tests/lib/yaml.test.ts
@@ -50,8 +50,12 @@ describe("Compose parsing", () => {
   test("parses and validates a minimal Compose project", async () => {
     const directory = await temporaryDirectory();
     const path = join(directory, "compose.yml");
-    await writeFile(path, "services:\n  app:\n    image: nginx:latest\n");
+    await writeFile(
+      path,
+      "name: compose-project\nservices:\n  app:\n    image: nginx:latest\n",
+    );
     expect(await readCompose(path)).toMatchObject({
+      name: "compose-project",
       services: { app: { image: "nginx:latest" } },
     });
   });
diff --git a/types.d.ts b/types.d.ts
index 3a6b692..ecf9220 100644
--- a/types.d.ts
+++ b/types.d.ts
@@ -35,7 +35,7 @@ export interface KuberBuildersConfig {
 }
 
 export interface KuberConfig {
-  /** Kubernetes namespace/project name. Defaults to the working directory name. */
+  /** Kubernetes namespace/project name. Overrides the Compose name and working directory. */
   project?: string;
   /** Compose file path, resolved relative to the working directory. */
   composeFile?: string;