diff --git a/extensions/vscode-containers/src/test/tree/containers/ContainerProperties.test.ts b/extensions/vscode-containers/src/test/tree/containers/ContainerProperties.test.ts
new file mode 100644
index 00000000..73120b9e
--- /dev/null
+++ b/extensions/vscode-containers/src/test/tree/containers/ContainerProperties.test.ts
@@ -0,0 +1,40 @@
+/*---------------------------------------------------------------------------------------------
+ *  Copyright (c) Microsoft Corporation. All rights reserved.
+ *  Licensed under the MIT License. See LICENSE.md in the project root for license information.
+ *--------------------------------------------------------------------------------------------*/
+
+import { ListContainersItem } from '@microsoft/vscode-container-client';
+import assert from 'assert';
+import { getComposeProjectGroup, NonComposeGroupName } from '../../../tree/containers/ContainerProperties';
+
+function makeContainer(labels: { [key: string]: string } | undefined): ListContainersItem {
+    return {
+        labels: labels,
+    } as ListContainersItem;
+}
+
+suite('(unit) ContainerProperties.getComposeProjectGroup', () => {
+    test('Groups compose containers by their compose project name', () => {
+        const container = makeContainer({ 'com.docker.compose.project': 'myproject' });
+        assert.strictEqual(getComposeProjectGroup(container), 'myproject');
+    });
+
+    test('Groups swarm stack containers by their stack namespace', () => {
+        const container = makeContainer({ 'com.docker.stack.namespace': 'mystack' });
+        assert.strictEqual(getComposeProjectGroup(container), 'mystack');
+    });
+
+    test('Prefers the compose project name when both labels are present', () => {
+        const container = makeContainer({
+            'com.docker.compose.project': 'myproject',
+            'com.docker.stack.namespace': 'mystack',
+        });
+        assert.strictEqual(getComposeProjectGroup(container), 'myproject');
+    });
+
+    test('Returns the non-compose group name for standalone containers', () => {
+        assert.strictEqual(getComposeProjectGroup(makeContainer({})), NonComposeGroupName);
+        assert.strictEqual(getComposeProjectGroup(makeContainer(undefined)), NonComposeGroupName);
+        assert.strictEqual(getComposeProjectGroup(makeContainer({ 'some.other.label': 'value' })), NonComposeGroupName);
+    });
+});
diff --git a/extensions/vscode-containers/src/tree/LocalGroupTreeItemBase.ts b/extensions/vscode-containers/src/tree/LocalGroupTreeItemBase.ts
index 61d69cf7..8a36f0f0 100644
--- a/extensions/vscode-containers/src/tree/LocalGroupTreeItemBase.ts
+++ b/extensions/vscode-containers/src/tree/LocalGroupTreeItemBase.ts
@@ -41,6 +41,10 @@ export abstract class LocalGroupTreeItemBase<TItem extends AnyContainerObject, T
         return this.parent.compareChildrenImpl(ti1, ti2);
     }
 
+    protected get items(): TItem[] {
+        return this._items;
+    }
+
     public get ChildTreeItems(): AzExtTreeItem[] {
         if (!this._childTreeItems) {
             this._childTreeItems = this.getChildTreeItems();
diff --git a/extensions/vscode-containers/src/tree/containers/ContainerGroupTreeItem.ts b/extensions/vscode-containers/src/tree/containers/ContainerGroupTreeItem.ts
index 600036be..1d53b90b 100644
--- a/extensions/vscode-containers/src/tree/containers/ContainerGroupTreeItem.ts
+++ b/extensions/vscode-containers/src/tree/containers/ContainerGroupTreeItem.ts
@@ -8,7 +8,7 @@ import { ThemeIcon, TreeItemCollapsibleState } from "vscode";
 import { LocalGroupTreeItemBase } from "../LocalGroupTreeItemBase";
 import { LocalRootTreeItemBase } from "../LocalRootTreeItemBase";
 import { getCommonGroupIcon } from "../settings/CommonProperties";
-import { ContainerProperty, getContainerStateIcon, NonComposeGroupName } from "./ContainerProperties";
+import { ContainerProperty, composeProjectLabel, getContainerStateIcon, NonComposeGroupName } from "./ContainerProperties";
 import { DockerContainerInfo } from "./ContainersTreeItem";
 
 export class ContainerGroupTreeItem extends LocalGroupTreeItemBase<DockerContainerInfo, ContainerProperty> {
@@ -26,13 +26,19 @@ export class ContainerGroupTreeItem extends LocalGroupTreeItemBase<DockerContain
     }
 
     public get contextValue(): string {
-        if (this.parent.groupBySetting === 'Compose Project Name' && this.group !== NonComposeGroupName) {
+        // The compose group commands (start/stop/restart/down/logs) rely on compose labels/files, which
+        // Docker Swarm stacks don't have. Only expose them for actual compose projects.
+        if (this.parent.groupBySetting === 'Compose Project Name' && this.group !== NonComposeGroupName && this.isComposeProjectGroup()) {
             return 'containerGroup;composeGroup';
         }
 
         return 'containerGroup';
     }
 
+    private isComposeProjectGroup(): boolean {
+        return this.items.some(item => !!item.labels?.[composeProjectLabel]);
+    }
+
     public get iconPath(): ThemeIcon {
         switch (this.parent.groupBySetting) {
             case 'ContainerId':
diff --git a/extensions/vscode-containers/src/tree/containers/ContainerProperties.ts b/extensions/vscode-containers/src/tree/containers/ContainerProperties.ts
index 2abbe2fe..6433b69b 100644
--- a/extensions/vscode-containers/src/tree/containers/ContainerProperties.ts
+++ b/extensions/vscode-containers/src/tree/containers/ContainerProperties.ts
@@ -20,7 +20,7 @@ export const containerProperties: ITreePropertyInfo<ContainerProperty>[] = [
     { property: 'Ports', exampleValue: '8080' },
     { property: 'State', exampleValue: 'exited' },
     { property: 'Status', exampleValue: 'Exited (0) 2 hours ago' },
-    { property: 'Compose Project Name', description: l10n.t('Value used to associate containers launched by a compose up command') },
+    { property: 'Compose Project Name', description: l10n.t('Value used to associate containers launched by a compose up command or a Docker Swarm stack') },
     { property: 'Label', exampleValue: 'com.microsoft.created-by=visual-studio-code' },
 ];
 
@@ -64,7 +64,7 @@ export function getContainerPropertyValue(item: ListContainersItem, property: Co
             // This normalizes things like "10 seconds" and "Less than a second" to "Less than a minute", meaning the refreshes don't happen constantly
             return item.status?.replace(/(\d+ seconds?)|(Less than a second)/i, l10n.t('Less than a minute'));
         case 'Compose Project Name':
-            return getLabelGroup(item, 'com.docker.compose.project', NonComposeGroupName);
+            return getComposeProjectGroup(item);
         case 'Image':
             return item.image.originalName;
         case 'Label':
@@ -77,6 +77,21 @@ export function getContainerPropertyValue(item: ListContainersItem, property: Co
 export const NonComposeGroupName = l10n.t('Individual Containers');
 export const NonLabelGroupName = l10n.t('Others');
 
+// The label Docker Compose adds to containers it creates, containing the compose project name
+export const composeProjectLabel = 'com.docker.compose.project';
+
+// The label Docker Swarm adds to containers it creates as part of a stack, containing the stack namespace (name)
+export const swarmStackNamespaceLabel = 'com.docker.stack.namespace';
+
+export function getComposeProjectGroup(container: ListContainersItem): string {
+    // Containers launched by `docker compose up` are grouped by their compose project name.
+    // Containers launched by `docker stack deploy` (Docker Swarm) are grouped by their stack namespace.
+    // Either way, this gives a meaningful group name for orchestrated containers, falling back to the
+    // non-compose group name for standalone containers.
+    return getLabelGroup(container, composeProjectLabel, '')
+        || getLabelGroup(container, swarmStackNamespaceLabel, NonComposeGroupName);
+}
+
 export function getLabelGroup(container: ListContainersItem, label: string | undefined, defaultGroupName: string): string {
     if (!label) {
         return defaultGroupName;