diff --git a/src/containerapp/HISTORY.rst b/src/containerapp/HISTORY.rst
index b2ed32f8928..249d44c935f 100644
--- a/src/containerapp/HISTORY.rst
+++ b/src/containerapp/HISTORY.rst
@@ -5,7 +5,8 @@ Release History
 upcoming
 ++++++
 * 'az containerapp function invocations': Update application insights query 
-* 'az containerapp function keys': Update minimum replica check 
+* 'az containerapp function keys': Update minimum replica check
+* 'az containerapp compose create': Fix `TypeError` when docker-compose file include `env_file` without `environment`
 
 1.3.0b1
 ++++++
diff --git a/src/containerapp/setup.py b/src/containerapp/setup.py
index 26f7aca1335..51e9cdb754b 100644
--- a/src/containerapp/setup.py
+++ b/src/containerapp/setup.py
@@ -47,7 +47,7 @@
 ]
 
 # TODO: Add any additional SDK dependencies here
-DEPENDENCIES = ['pycomposefile>=0.0.29', 'docker', 'kubernetes==24.2.0']
+DEPENDENCIES = ['pycomposefile>=0.0.34', 'docker', 'kubernetes==24.2.0']
 
 # Install pack CLI to build runnable application images from source
 _ = get_pack_exec_path()