diff --git a/builders/_lagoon.js b/builders/_lagoon.js
index 45a75e7..c7e5860 100644
--- a/builders/_lagoon.js
+++ b/builders/_lagoon.js
@@ -20,8 +20,11 @@ module.exports = {
       const hostnames = _.get(options, '_app.lagoon.containers', []);
 
       // Normalize the dockerfile situation
-      // We need to do this again since this isnt technically an override
-      if (_.has(lagoon, 'build.context')) lagoon.build.context = path.join(options.root);
+      // Resolve build context relative to the project root so non-root contexts
+      // (eg context: frontend) work correctly instead of always forcing root
+      if (_.has(lagoon, 'build.context')) {
+        lagoon.build.context = path.resolve(options.root, lagoon.build.context);
+      }
 
       // Handle portfoward in the usual way
       if (options.portforward) {
diff --git a/examples/drupal9-base/README.md b/examples/drupal9-base/README.md
index 3049337..91c282f 100644
--- a/examples/drupal9-base/README.md
+++ b/examples/drupal9-base/README.md
@@ -41,6 +41,16 @@ docker ps --filter label=com.docker.compose.project | grep Up | grep drupalbase_
 docker ps --filter label=com.docker.compose.project | grep Up | grep drupalbase_php_1
 docker ps --filter label=com.docker.compose.project | grep Up | grep drupalbase_cli_1
 
+# Should have built nginx and php from the cli image via CLI_IMAGE build arg
+cd drupal
+lando ssh -s cli -c "test -f /app/web/index.php"
+lando ssh -s nginx -c "test -f /app/web/index.php"
+lando ssh -s php -c "test -f /app/web/index.php"
+
+# Should not have additional_contexts in the generated compose files
+cd drupal
+cat ~/.lando/compose/drupalbase-* 2>/dev/null | grep "additional_contexts" && exit 1 || true
+
 # Should ssh against the cli container by default
 cd drupal
 lando ssh -c "env | grep LAGOON=" | grep cli-drupal
diff --git a/lib/config.js b/lib/config.js
index 1da63f3..6361af2 100644
--- a/lib/config.js
+++ b/lib/config.js
@@ -44,11 +44,20 @@ exports.loadConfigFiles = baseDir => {
  */
 exports.parseServices = (services, recipeConfig) => _(services)
   // Remove unneeded things from the docker config and determine the type of the service
-  .map((config, name) => _.merge({}, {
-    name,
-    type: getLabel(config.labels),
-    compose: _.omit(config, ['volumes', 'volumes_from', 'networks', 'user']),
-    config: recipeConfig,
-  }))
+  .map((config, name) => {
+    // Strip additional_contexts from build config since Lando splits services
+    // into separate compose files and service: refs cant resolve across them
+    if (_.has(config, 'build.additional_contexts')) {
+      config = _.cloneDeep(config);
+      delete config.build.additional_contexts;
+    }
+
+    return _.merge({}, {
+      name,
+      type: getLabel(config.labels),
+      compose: _.omit(config, ['volumes', 'volumes_from', 'networks', 'user']),
+      config: recipeConfig,
+    });
+  })
   // Return
   .value();