diff --git a/pkg/compose/create.go b/pkg/compose/create.go
index 04b8dd9e5..19503f368 100644
--- a/pkg/compose/create.go
+++ b/pkg/compose/create.go
@@ -1453,6 +1453,14 @@ func (s *composeService) createNetwork(ctx context.Context, n *types.NetworkConf
 	s.events.On(creatingEvent(networkEventName))
 
 	if _, err := s.apiClient().NetworkCreate(ctx, n.Name, createOpts); err != nil {
+		// A concurrent `docker compose up|run` may have created the same network
+		// between the observed-state snapshot and now. Treat the resulting
+		// conflict as success rather than failing hard, mirroring the retry the
+		// previous ensureNetwork performed.
+		if errdefs.IsConflict(err) {
+			s.events.On(createdEvent(networkEventName))
+			return nil
+		}
 		s.events.On(errorEvent(networkEventName, err.Error()))
 		return fmt.Errorf("failed to create network %s: %w", n.Name, err)
 	}
diff --git a/pkg/compose/executor_test.go b/pkg/compose/executor_test.go
index 019deb471..ea0cafbde 100644
--- a/pkg/compose/executor_test.go
+++ b/pkg/compose/executor_test.go
@@ -385,8 +385,38 @@ func TestExecutePlanRecreateNetwork(t *testing.T) {
 	assert.NilError(t, err)
 }
 
+// TestExecutePlanCreateNetworkConflictIsSuccess verifies that a NetworkCreate
+// conflict (a concurrent up/run created the same network) is treated as success
+// rather than surfacing as a hard failure.
+func TestExecutePlanCreateNetworkConflictIsSuccess(t *testing.T) {
+	svc, apiClient := newTestService(t)
+
+	nw := types.NetworkConfig{Name: "test_default"}
+	project := &types.Project{Name: "test", Networks: types.Networks{"default": nw}}
+
+	apiClient.EXPECT().NetworkCreate(gomock.Any(), "test_default", gomock.Any()).
+		Return(client.NetworkCreateResult{}, conflictError{})
+
+	plan := &Plan{}
+	plan.addNode(Operation{
+		Type:       OpCreateNetwork,
+		ResourceID: "network:default",
+		Cause:      "not found",
+		Name:       nw.Name,
+		Network:    &nw,
+	}, "")
+
+	assert.NilError(t, svc.executePlan(t.Context(), project, emptyObservedState("test"), plan))
+}
+
 // notFoundError implements the errdefs.ErrNotFound interface for test mocks.
 type notFoundError struct{}
 
 func (notFoundError) Error() string { return "not found" }
 func (notFoundError) NotFound()     {}
+
+// conflictError implements the errdefs.ErrConflict interface for test mocks.
+type conflictError struct{}
+
+func (conflictError) Error() string { return "conflict" }
+func (conflictError) Conflict()     {}
diff --git a/pkg/compose/observed_state.go b/pkg/compose/observed_state.go
index 80f4b6b94..10ec46cab 100644
--- a/pkg/compose/observed_state.go
+++ b/pkg/compose/observed_state.go
@@ -198,13 +198,27 @@ func (s *composeService) discoverUnmanagedNetworks(ctx context.Context, project
 			ID:          inspected.Network.ID,
 			Name:        inspected.Network.Name,
 			ProjectName: inspected.Network.Labels[api.ProjectLabel],
-			// ConfigHash intentionally left empty: the network is not owned by
-			// this project, so we must not treat it as diverged and recreate it.
+			// Preserve the config-hash only when the network belongs to this
+			// project (e.g. an older Compose wrote the project label but not the
+			// network-key label): the reconciler then still detects genuine
+			// divergence. For a network we don't own the hash is left empty so we
+			// reuse it untouched rather than recreate it.
+			ConfigHash: ownedConfigHash(inspected.Network.Labels, project.Name),
 		}
 	}
 	return nil
 }
 
+// ownedConfigHash returns the config-hash label only when the resource belongs
+// to the given project; otherwise it returns "" so the reconciler treats the
+// resource as an unmanaged match to be reused untouched.
+func ownedConfigHash(labels map[string]string, projectName string) string {
+	if labels[api.ProjectLabel] != projectName {
+		return ""
+	}
+	return labels[api.ConfigHashLabel]
+}
+
 // discoverUnmanagedVolumes augments the observed state with volumes that match a
 // declared volume by name but carry no compose label — pre-label Compose or
 // manually created volumes, missed by the label-filtered VolumeList. Each is
@@ -231,8 +245,12 @@ func (s *composeService) discoverUnmanagedVolumes(ctx context.Context, project *
 			Name:        inspected.Volume.Name,
 			ProjectName: inspected.Volume.Labels[api.ProjectLabel],
 			Driver:      inspected.Volume.Driver,
-			// ConfigHash intentionally left empty: the volume is not owned by
-			// this project, so we must not treat it as diverged and recreate it.
+			// Preserve the config-hash only when the volume belongs to this
+			// project (older Compose wrote the project label but not the
+			// volume-key label): the reconciler then still detects divergence.
+			// For a volume we don't own the hash is left empty so we reuse it
+			// untouched rather than recreate it.
+			ConfigHash: ownedConfigHash(inspected.Volume.Labels, project.Name),
 		}
 	}
 	return nil
diff --git a/pkg/compose/observed_state_test.go b/pkg/compose/observed_state_test.go
index 94ca256cb..919408c69 100644
--- a/pkg/compose/observed_state_test.go
+++ b/pkg/compose/observed_state_test.go
@@ -236,6 +236,40 @@ func TestCollectObservedState_LegacyNetworkMatchedByName(t *testing.T) {
 	assert.Equal(t, obs.ConfigHash, "", "unmanaged match must have an empty config hash")
 }
 
+// TestCollectObservedState_OwnedNetworkMissingKeyLabelKeepsHash verifies that a
+// network owned by this project but missing the network-key label (e.g. written
+// by an older Compose) keeps its config-hash, so genuine divergence is still
+// detected rather than silently skipped.
+func TestCollectObservedState_OwnedNetworkMissingKeyLabelKeepsHash(t *testing.T) {
+	project := &types.Project{Name: "myproject", Networks: types.Networks{"frontend": {Name: "myproject_frontend"}}}
+	state, err := collectByNameDiscovery(t, project, func(apiClient *mocks.MockAPIClient) {
+		apiClient.EXPECT().NetworkInspect(gomock.Any(), "myproject_frontend", gomock.Any()).Return(client.NetworkInspectResult{
+			Network: network.Inspect{Network: network.Network{ID: "net1", Name: "myproject_frontend", Labels: map[string]string{
+				api.ProjectLabel:    "myproject", // owned, but no NetworkLabel
+				api.ConfigHashLabel: "realhash",
+			}}},
+		}, nil)
+	})
+	assert.NilError(t, err)
+	assert.Equal(t, state.Networks["frontend"].ConfigHash, "realhash")
+}
+
+// TestCollectObservedState_OwnedVolumeMissingKeyLabelKeepsHash is the volume
+// counterpart of the network case above.
+func TestCollectObservedState_OwnedVolumeMissingKeyLabelKeepsHash(t *testing.T) {
+	project := &types.Project{Name: "myproject", Volumes: types.Volumes{"data": {Name: "myproject_data"}}}
+	state, err := collectByNameDiscovery(t, project, func(apiClient *mocks.MockAPIClient) {
+		apiClient.EXPECT().VolumeInspect(gomock.Any(), "myproject_data", gomock.Any()).Return(client.VolumeInspectResult{
+			Volume: volume.Volume{Name: "myproject_data", Labels: map[string]string{
+				api.ProjectLabel:    "myproject", // owned, but no VolumeLabel
+				api.ConfigHashLabel: "realhash",
+			}},
+		}, nil)
+	})
+	assert.NilError(t, err)
+	assert.Equal(t, state.Volumes["data"].ConfigHash, "realhash")
+}
+
 // TestCollectObservedState_ForeignProjectNetworkMatchedByName verifies that a
 // network owned by another project but matching the declared name is recorded
 // with an empty ConfigHash (reused untouched) and keeps the foreign project name.