diff --git a/CHANGELOG.md b/CHANGELOG.md
index 751fd16..ec1b3f3 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -7,10 +7,18 @@ All notable changes to the Docker Language Server will be documented in this fil
 ### Added
 
 - Compose
+  - textDocument/definition
+    - recurse into anchors when evaluating the cursor's position ([#305](https://github.com/docker/docker-language-server/issues/305))
+  - textDocument/documentHighlight
+    - recurse into anchors when evaluating the cursor's position ([#305](https://github.com/docker/docker-language-server/issues/305))
   - textDocument/documentLink
     - ensure the image attribute is valid before trying to process it for document links ([#306](https://github.com/docker/docker-language-server/issues/306))
   - textDocument/hover
     - resolve anchors when constructing the path of the hovered item ([#303](https://github.com/docker/docker-language-server/issues/303))
+  - textDocument/prepareRename
+    - recurse into anchors when evaluating the cursor's position ([#305](https://github.com/docker/docker-language-server/issues/305))
+  - textDocument/rename
+    - recurse into anchors when evaluating the cursor's position ([#305](https://github.com/docker/docker-language-server/issues/305))
 
 ## [0.10.2] - 2025-06-06
 
diff --git a/internal/compose/documentHighlight.go b/internal/compose/documentHighlight.go
index 0594f7e..1b2f15f 100644
--- a/internal/compose/documentHighlight.go
+++ b/internal/compose/documentHighlight.go
@@ -14,64 +14,52 @@ type dependencyReference struct {
 	documentHighlights []protocol.DocumentHighlight
 }
 
-func serviceDependencyReferences(node *ast.MappingValueNode, dependencyAttributeName string, arrayOnly bool) []*token.Token {
-	if servicesNode, ok := node.Value.(*ast.MappingNode); ok {
-		tokens := []*token.Token{}
-		for _, serviceNode := range servicesNode.Values {
-			serviceNodeValue := serviceNode.Value
-			if anchor, ok := serviceNode.Value.(*ast.AnchorNode); ok {
-				serviceNodeValue = anchor.Value
-			}
-			if serviceAttributes, ok := serviceNodeValue.(*ast.MappingNode); ok {
-				for _, attributeNode := range serviceAttributes.Values {
-					if attributeNode.Key.GetToken().Value == dependencyAttributeName {
-						if sequenceNode, ok := attributeNode.Value.(*ast.SequenceNode); ok {
-							for _, service := range sequenceNode.Values {
-								tokens = append(tokens, service.GetToken())
-							}
-						} else if !arrayOnly {
-							if mappingNode, ok := attributeNode.Value.(*ast.MappingNode); ok {
-								for _, dependentService := range mappingNode.Values {
-									tokens = append(tokens, dependentService.Key.GetToken())
-								}
+func serviceDependencyReferences(servicesNode *ast.MappingNode, dependencyAttributeName string, arrayOnly bool) []*token.Token {
+	tokens := []*token.Token{}
+	for _, serviceNode := range servicesNode.Values {
+		if serviceAttributes, ok := resolveAnchor(serviceNode.Value).(*ast.MappingNode); ok {
+			for _, attributeNode := range serviceAttributes.Values {
+				if resolveAnchor(attributeNode.Key).GetToken().Value == dependencyAttributeName {
+					if sequenceNode, ok := resolveAnchor(attributeNode.Value).(*ast.SequenceNode); ok {
+						for _, service := range sequenceNode.Values {
+							tokens = append(tokens, resolveAnchor(service).GetToken())
+						}
+					} else if !arrayOnly {
+						if mappingNode, ok := resolveAnchor(attributeNode.Value).(*ast.MappingNode); ok {
+							for _, dependentService := range mappingNode.Values {
+								tokens = append(tokens, resolveAnchor(dependentService.Key).GetToken())
 							}
 						}
 					}
 				}
 			}
 		}
-		return tokens
 	}
-	return nil
+	return tokens
 }
 
-func extendedServiceReferences(node *ast.MappingValueNode) []*token.Token {
-	if servicesNode, ok := node.Value.(*ast.MappingNode); ok {
-		tokens := []*token.Token{}
-		for _, serviceNode := range servicesNode.Values {
-			serviceNodeValue := serviceNode.Value
-			if anchor, ok := serviceNode.Value.(*ast.AnchorNode); ok {
-				serviceNodeValue = anchor.Value
-			}
-			if serviceAttributes, ok := serviceNodeValue.(*ast.MappingNode); ok {
-				for _, attributeNode := range serviceAttributes.Values {
-					if attributeNode.Key.GetToken().Value == "extends" {
-						if extendedValue, ok := attributeNode.Value.(*ast.StringNode); ok {
-							tokens = append(tokens, extendedValue.GetToken())
-						} else if mappingNode, ok := attributeNode.Value.(*ast.MappingNode); ok {
-							localService := true
-							for _, extendsObjectAttribute := range mappingNode.Values {
-								if extendsObjectAttribute.Key.GetToken().Value == "file" {
-									localService = false
-									break
-								}
+func extendedServiceReferences(servicesNode *ast.MappingNode) []*token.Token {
+	tokens := []*token.Token{}
+	for _, serviceNode := range servicesNode.Values {
+		if serviceAttributes, ok := resolveAnchor(serviceNode.Value).(*ast.MappingNode); ok {
+			for _, attributeNode := range serviceAttributes.Values {
+				if resolveAnchor(attributeNode.Key).GetToken().Value == "extends" {
+					attributeNodeValue := resolveAnchor(attributeNode.Value)
+					if extendedValue, ok := attributeNodeValue.(*ast.StringNode); ok {
+						tokens = append(tokens, extendedValue.GetToken())
+					} else if mappingNode, ok := resolveAnchor(attributeNodeValue).(*ast.MappingNode); ok {
+						localService := true
+						for _, extendsObjectAttribute := range mappingNode.Values {
+							if resolveAnchor(extendsObjectAttribute.Key).GetToken().Value == "file" {
+								localService = false
+								break
 							}
+						}
 
-							if localService {
-								for _, extendsObjectAttribute := range mappingNode.Values {
-									if extendsObjectAttribute.Key.GetToken().Value == "service" {
-										tokens = append(tokens, extendsObjectAttribute.Value.GetToken())
-									}
+						if localService {
+							for _, extendsObjectAttribute := range mappingNode.Values {
+								if resolveAnchor(extendsObjectAttribute.Key).GetToken().Value == "service" {
+									tokens = append(tokens, resolveAnchor(extendsObjectAttribute.Value).GetToken())
 								}
 							}
 						}
@@ -79,9 +67,8 @@ func extendedServiceReferences(node *ast.MappingValueNode) []*token.Token {
 				}
 			}
 		}
-		return tokens
 	}
-	return nil
+	return tokens
 }
 
 func volumeToken(t *token.Token) *token.Token {
@@ -96,78 +83,65 @@ func volumeToken(t *token.Token) *token.Token {
 	return t
 }
 
-func volumeReferences(node *ast.MappingValueNode) []*token.Token {
-	if servicesNode, ok := node.Value.(*ast.MappingNode); ok {
-		tokens := []*token.Token{}
-		for _, serviceNode := range servicesNode.Values {
-			serviceNodeValue := serviceNode.Value
-			if anchor, ok := serviceNode.Value.(*ast.AnchorNode); ok {
-				serviceNodeValue = anchor.Value
-			}
-			if serviceAttributes, ok := serviceNodeValue.(*ast.MappingNode); ok {
-				for _, attributeNode := range serviceAttributes.Values {
-					if attributeNode.Key.GetToken().Value == "volumes" {
-						if sequenceNode, ok := attributeNode.Value.(*ast.SequenceNode); ok {
-							for _, service := range sequenceNode.Values {
-								if volumeObjectNode, ok := service.(*ast.MappingNode); ok {
-									for _, volumeAttribute := range volumeObjectNode.Values {
-										if volumeAttribute.Key.GetToken().Value == "source" {
-											tokens = append(tokens, volumeAttribute.Value.GetToken())
-										}
+func volumeReferences(servicesNode *ast.MappingNode) []*token.Token {
+	tokens := []*token.Token{}
+	for _, serviceNode := range servicesNode.Values {
+		if serviceAttributes, ok := resolveAnchor(serviceNode.Value).(*ast.MappingNode); ok {
+			for _, attributeNode := range serviceAttributes.Values {
+				if resolveAnchor(attributeNode.Key).GetToken().Value == "volumes" {
+					volumesValue := resolveAnchor(attributeNode.Value)
+					if sequenceNode, ok := volumesValue.(*ast.SequenceNode); ok {
+						for _, volume := range sequenceNode.Values {
+							volumeNode := resolveAnchor(volume)
+							if volumeObjectNode, ok := volumeNode.(*ast.MappingNode); ok {
+								for _, volumeAttribute := range volumeObjectNode.Values {
+									if resolveAnchor(volumeAttribute.Key).GetToken().Value == "source" {
+										tokens = append(tokens, resolveAnchor(volumeAttribute.Value).GetToken())
 									}
-								} else {
-									tokens = append(tokens, volumeToken(service.GetToken()))
 								}
+							} else {
+								tokens = append(tokens, volumeToken(volumeNode.GetToken()))
 							}
-						} else if mappingNode, ok := attributeNode.Value.(*ast.MappingNode); ok {
-							for _, dependentService := range mappingNode.Values {
-								tokens = append(tokens, dependentService.Key.GetToken())
-							}
+						}
+					} else if mappingNode, ok := volumesValue.(*ast.MappingNode); ok {
+						for _, dependentService := range mappingNode.Values {
+							tokens = append(tokens, resolveAnchor(dependentService.Key).GetToken())
 						}
 					}
 				}
 			}
 		}
-		return tokens
 	}
-	return nil
+	return tokens
 }
 
-func declarations(node *ast.MappingValueNode, dependencyType string) []*token.Token {
-	if s, ok := node.Key.(*ast.StringNode); ok && s.Value == dependencyType {
-		if servicesNode, ok := node.Value.(*ast.MappingNode); ok {
-			tokens := []*token.Token{}
-			for _, serviceNode := range servicesNode.Values {
-				tokens = append(tokens, serviceNode.Key.GetToken())
-			}
-			return tokens
-		}
+func declarations(node *ast.MappingNode) []*token.Token {
+	tokens := []*token.Token{}
+	for _, serviceNode := range node.Values {
+		tokens = append(tokens, resolveAnchor(serviceNode.Key).GetToken())
 	}
-	return nil
+	return tokens
 }
 
-func findFragments(mappingNode *ast.MappingNode, anchors []*ast.AnchorNode, aliases []*ast.AliasNode) ([]*ast.AnchorNode, []*ast.AliasNode) {
-	for _, node := range mappingNode.Values {
-		if anchor, ok := node.Value.(*ast.AnchorNode); ok {
-			anchors = append(anchors, anchor)
-		} else if alias, ok := node.Value.(*ast.AliasNode); ok {
-			aliases = append(aliases, alias)
-		} else if m, ok := node.Value.(*ast.MappingNode); ok {
-			otherAnchors, otherAliases := findFragments(m, []*ast.AnchorNode{}, []*ast.AliasNode{})
+func findFragments(node ast.Node, anchors []*ast.AnchorNode, aliases []*ast.AliasNode) ([]*ast.AnchorNode, []*ast.AliasNode) {
+	if anchor, ok := node.(*ast.AnchorNode); ok {
+		anchors = append(anchors, anchor)
+		otherAnchors, otherAliases := findFragments(resolveAnchor(anchor), []*ast.AnchorNode{}, []*ast.AliasNode{})
+		anchors = append(anchors, otherAnchors...)
+		aliases = append(aliases, otherAliases...)
+	} else if alias, ok := node.(*ast.AliasNode); ok {
+		aliases = append(aliases, alias)
+	} else if m, ok := node.(*ast.MappingNode); ok {
+		for _, v := range m.Values {
+			otherAnchors, otherAliases := findFragments(v.Value, []*ast.AnchorNode{}, []*ast.AliasNode{})
+			anchors = append(anchors, otherAnchors...)
+			aliases = append(aliases, otherAliases...)
+		}
+	} else if s, ok := node.(*ast.SequenceNode); ok {
+		for _, item := range s.Values {
+			otherAnchors, otherAliases := findFragments(item, []*ast.AnchorNode{}, []*ast.AliasNode{})
 			anchors = append(anchors, otherAnchors...)
 			aliases = append(aliases, otherAliases...)
-		} else if s, ok := node.Value.(*ast.SequenceNode); ok {
-			for _, item := range s.Values {
-				if anchor, ok := item.(*ast.AnchorNode); ok {
-					anchors = append(anchors, anchor)
-				} else if alias, ok := item.(*ast.AliasNode); ok {
-					aliases = append(aliases, alias)
-				} else if m, ok := item.(*ast.MappingNode); ok {
-					otherAnchors, otherAliases := findFragments(m, []*ast.AnchorNode{}, []*ast.AliasNode{})
-					anchors = append(anchors, otherAnchors...)
-					aliases = append(aliases, otherAliases...)
-				}
-			}
 		}
 	}
 	return anchors, aliases
@@ -281,6 +255,15 @@ func DocumentHighlight(doc document.ComposeDocument, position protocol.Position)
 	return references.documentHighlights, nil
 }
 
+func convertTopLevelNode(node *ast.MappingValueNode) (*ast.StringNode, *ast.MappingNode) {
+	if s, ok := resolveAnchor(node.Key).(*ast.StringNode); ok {
+		if m, ok := resolveAnchor(node.Value).(*ast.MappingNode); ok {
+			return s, m
+		}
+	}
+	return nil, nil
+}
+
 func DocumentHighlights(doc document.ComposeDocument, position protocol.Position) (string, dependencyReference) {
 	file := doc.File()
 	if file == nil || len(file.Docs) == 0 {
@@ -299,29 +282,32 @@ func DocumentHighlights(doc document.ComposeDocument, position protocol.Position
 		var configDeclarations []*token.Token
 		var secretDeclarations []*token.Token
 		for _, node := range mappingNode.Values {
-			if s, ok := node.Key.(*ast.StringNode); ok {
-				switch s.Value {
-				case "services":
-					refs := serviceDependencyReferences(node, "depends_on", false)
-					refs = append(refs, extendedServiceReferences(node)...)
-					decls := declarations(node, "services")
-					name, highlights := highlightReferences("services", refs, decls, line, character)
-					if len(highlights.documentHighlights) > 0 {
-						return name, highlights
-					}
-					networkRefs = serviceDependencyReferences(node, "networks", false)
-					configRefs = serviceDependencyReferences(node, "configs", true)
-					secretRefs = serviceDependencyReferences(node, "secrets", true)
-					volumeRefs = volumeReferences(node)
-				case "networks":
-					networkDeclarations = declarations(node, "networks")
-				case "volumes":
-					volumeDeclarations = declarations(node, "volumes")
-				case "configs":
-					configDeclarations = declarations(node, "configs")
-				case "secrets":
-					secretDeclarations = declarations(node, "secrets")
+			name, value := convertTopLevelNode(node)
+			if name == nil || value == nil {
+				continue
+			}
+
+			switch name.Value {
+			case "services":
+				refs := serviceDependencyReferences(value, "depends_on", false)
+				refs = append(refs, extendedServiceReferences(value)...)
+				decls := declarations(value)
+				name, highlights := highlightReferences("services", refs, decls, line, character)
+				if len(highlights.documentHighlights) > 0 {
+					return name, highlights
 				}
+				networkRefs = serviceDependencyReferences(value, "networks", false)
+				configRefs = serviceDependencyReferences(value, "configs", true)
+				secretRefs = serviceDependencyReferences(value, "secrets", true)
+				volumeRefs = volumeReferences(value)
+			case "networks":
+				networkDeclarations = declarations(value)
+			case "volumes":
+				volumeDeclarations = declarations(value)
+			case "configs":
+				configDeclarations = declarations(value)
+			case "secrets":
+				secretDeclarations = declarations(value)
 			}
 		}
 		name, highlights := highlightReferences("networks", networkRefs, networkDeclarations, line, character)
diff --git a/internal/compose/documentHighlight_test.go b/internal/compose/documentHighlight_test.go
index b122998..453c337 100644
--- a/internal/compose/documentHighlight_test.go
+++ b/internal/compose/documentHighlight_test.go
@@ -46,6 +46,96 @@ var serviceReferenceTestCases = []struct {
 		name: "write highlight on a service",
 		content: `
 services:
+  test:`,
+		line:      2,
+		character: 4,
+		locations: func(u protocol.DocumentUri) any {
+			return types.CreateDefinitionResult(false, protocol.Range{
+				Start: protocol.Position{Line: 2, Character: 2},
+				End:   protocol.Position{Line: 2, Character: 6},
+			}, nil, u)
+		},
+		links: func(u protocol.DocumentUri) any {
+			return types.CreateDefinitionResult(true, protocol.Range{
+				Start: protocol.Position{Line: 2, Character: 2},
+				End:   protocol.Position{Line: 2, Character: 6},
+			}, &protocol.Range{
+				Start: protocol.Position{Line: 2, Character: 2},
+				End:   protocol.Position{Line: 2, Character: 6},
+			}, u)
+		},
+		ranges: []protocol.DocumentHighlight{
+			documentHighlight(2, 2, 2, 6, protocol.DocumentHighlightKindWrite),
+		},
+		renameEdits: func(u protocol.DocumentUri) *protocol.WorkspaceEdit {
+			return &protocol.WorkspaceEdit{
+				Changes: map[protocol.DocumentUri][]protocol.TextEdit{
+					u: {
+						{
+							NewText: "newName",
+							Range: protocol.Range{
+								Start: protocol.Position{Line: 2, Character: 2},
+								End:   protocol.Position{Line: 2, Character: 6},
+							},
+						},
+					},
+				},
+			}
+		},
+		prepareRename: &protocol.Range{
+			Start: protocol.Position{Line: 2, Character: 2},
+			End:   protocol.Position{Line: 2, Character: 6},
+		},
+	},
+	{
+		name: "write highlight on a services node itself anchored",
+		content: `
+&anchor services:
+  test:`,
+		line:      2,
+		character: 4,
+		locations: func(u protocol.DocumentUri) any {
+			return types.CreateDefinitionResult(false, protocol.Range{
+				Start: protocol.Position{Line: 2, Character: 2},
+				End:   protocol.Position{Line: 2, Character: 6},
+			}, nil, u)
+		},
+		links: func(u protocol.DocumentUri) any {
+			return types.CreateDefinitionResult(true, protocol.Range{
+				Start: protocol.Position{Line: 2, Character: 2},
+				End:   protocol.Position{Line: 2, Character: 6},
+			}, &protocol.Range{
+				Start: protocol.Position{Line: 2, Character: 2},
+				End:   protocol.Position{Line: 2, Character: 6},
+			}, u)
+		},
+		ranges: []protocol.DocumentHighlight{
+			documentHighlight(2, 2, 2, 6, protocol.DocumentHighlightKindWrite),
+		},
+		renameEdits: func(u protocol.DocumentUri) *protocol.WorkspaceEdit {
+			return &protocol.WorkspaceEdit{
+				Changes: map[protocol.DocumentUri][]protocol.TextEdit{
+					u: {
+						{
+							NewText: "newName",
+							Range: protocol.Range{
+								Start: protocol.Position{Line: 2, Character: 2},
+								End:   protocol.Position{Line: 2, Character: 6},
+							},
+						},
+					},
+				},
+			}
+		},
+		prepareRename: &protocol.Range{
+			Start: protocol.Position{Line: 2, Character: 2},
+			End:   protocol.Position{Line: 2, Character: 6},
+		},
+	},
+	{
+		name: "write highlight on a services node's value anchored",
+		content: `
+services: &anchor
   test:`,
 		line:      2,
 		character: 4,
@@ -121,6 +211,142 @@ services:
 			End:   protocol.Position{Line: 4, Character: 13},
 		},
 	},
+	{
+		name: "read highlight on an undefined service's depends_on array string with depends_on itself anchored",
+		content: `
+services:
+  test:
+    &anchor depends_on:
+      - test2`,
+		line:      4,
+		character: 10,
+		locations: func(u protocol.DocumentUri) any { return nil },
+		links:     func(u protocol.DocumentUri) any { return nil },
+		ranges: []protocol.DocumentHighlight{
+			documentHighlight(4, 8, 4, 13, protocol.DocumentHighlightKindRead),
+		},
+		renameEdits: func(u protocol.DocumentUri) *protocol.WorkspaceEdit {
+			return &protocol.WorkspaceEdit{
+				Changes: map[protocol.DocumentUri][]protocol.TextEdit{
+					u: {
+						{
+							NewText: "newName",
+							Range: protocol.Range{
+								Start: protocol.Position{Line: 4, Character: 8},
+								End:   protocol.Position{Line: 4, Character: 13},
+							},
+						},
+					},
+				},
+			}
+		},
+		prepareRename: &protocol.Range{
+			Start: protocol.Position{Line: 4, Character: 8},
+			End:   protocol.Position{Line: 4, Character: 13},
+		},
+	},
+	{
+		name: "read highlight on an undefined service's depends_on array string with depends_on's value anchored",
+		content: `
+services:
+  test:
+    depends_on: &anchor
+      - test2`,
+		line:      4,
+		character: 10,
+		locations: func(u protocol.DocumentUri) any { return nil },
+		links:     func(u protocol.DocumentUri) any { return nil },
+		ranges: []protocol.DocumentHighlight{
+			documentHighlight(4, 8, 4, 13, protocol.DocumentHighlightKindRead),
+		},
+		renameEdits: func(u protocol.DocumentUri) *protocol.WorkspaceEdit {
+			return &protocol.WorkspaceEdit{
+				Changes: map[protocol.DocumentUri][]protocol.TextEdit{
+					u: {
+						{
+							NewText: "newName",
+							Range: protocol.Range{
+								Start: protocol.Position{Line: 4, Character: 8},
+								End:   protocol.Position{Line: 4, Character: 13},
+							},
+						},
+					},
+				},
+			}
+		},
+		prepareRename: &protocol.Range{
+			Start: protocol.Position{Line: 4, Character: 8},
+			End:   protocol.Position{Line: 4, Character: 13},
+		},
+	},
+	{
+		name: "read highlight on an undefined service's depends_on array string with depends_on itself anchored",
+		content: `
+services:
+  test:
+    &anchor depends_on:
+      - test2`,
+		line:      4,
+		character: 10,
+		locations: func(u protocol.DocumentUri) any { return nil },
+		links:     func(u protocol.DocumentUri) any { return nil },
+		ranges: []protocol.DocumentHighlight{
+			documentHighlight(4, 8, 4, 13, protocol.DocumentHighlightKindRead),
+		},
+		renameEdits: func(u protocol.DocumentUri) *protocol.WorkspaceEdit {
+			return &protocol.WorkspaceEdit{
+				Changes: map[protocol.DocumentUri][]protocol.TextEdit{
+					u: {
+						{
+							NewText: "newName",
+							Range: protocol.Range{
+								Start: protocol.Position{Line: 4, Character: 8},
+								End:   protocol.Position{Line: 4, Character: 13},
+							},
+						},
+					},
+				},
+			}
+		},
+		prepareRename: &protocol.Range{
+			Start: protocol.Position{Line: 4, Character: 8},
+			End:   protocol.Position{Line: 4, Character: 13},
+		},
+	},
+	{
+		name: "read highlight on an undefined service's depends_on array string with an anchored value",
+		content: `
+services:
+  test:
+    depends_on:
+      - &anchor test2`,
+		line:      4,
+		character: 18,
+		locations: func(u protocol.DocumentUri) any { return nil },
+		links:     func(u protocol.DocumentUri) any { return nil },
+		ranges: []protocol.DocumentHighlight{
+			documentHighlight(4, 16, 4, 21, protocol.DocumentHighlightKindRead),
+		},
+		renameEdits: func(u protocol.DocumentUri) *protocol.WorkspaceEdit {
+			return &protocol.WorkspaceEdit{
+				Changes: map[protocol.DocumentUri][]protocol.TextEdit{
+					u: {
+						{
+							NewText: "newName",
+							Range: protocol.Range{
+								Start: protocol.Position{Line: 4, Character: 16},
+								End:   protocol.Position{Line: 4, Character: 21},
+							},
+						},
+					},
+				},
+			}
+		},
+		prepareRename: &protocol.Range{
+			Start: protocol.Position{Line: 4, Character: 16},
+			End:   protocol.Position{Line: 4, Character: 21},
+		},
+	},
 	{
 		name: "read highlight on an undefined quoted service's depends_on array string",
 		content: `
@@ -213,18 +439,34 @@ services:
 		},
 	},
 	{
-		name: "read highlight on an undefined service object with no properties",
+		name: "read highlight on a depends_on string service with the declaration anchored",
 		content: `
 services:
   test:
     depends_on:
-      test2:`,
+      - test2
+  &anchor test2:
+    image: redis`,
 		line:      4,
-		character: 9,
-		locations: func(u protocol.DocumentUri) any { return nil },
-		links:     func(u protocol.DocumentUri) any { return nil },
+		character: 12,
+		locations: func(u protocol.DocumentUri) any {
+			return types.CreateDefinitionResult(false, protocol.Range{
+				Start: protocol.Position{Line: 5, Character: 10},
+				End:   protocol.Position{Line: 5, Character: 15},
+			}, nil, u)
+		},
+		links: func(u protocol.DocumentUri) any {
+			return types.CreateDefinitionResult(true, protocol.Range{
+				Start: protocol.Position{Line: 5, Character: 10},
+				End:   protocol.Position{Line: 5, Character: 15},
+			}, &protocol.Range{
+				Start: protocol.Position{Line: 4, Character: 8},
+				End:   protocol.Position{Line: 4, Character: 13},
+			}, u)
+		},
 		ranges: []protocol.DocumentHighlight{
-			documentHighlight(4, 6, 4, 11, protocol.DocumentHighlightKindRead),
+			documentHighlight(4, 8, 4, 13, protocol.DocumentHighlightKindRead),
+			documentHighlight(5, 10, 5, 15, protocol.DocumentHighlightKindWrite),
 		},
 		renameEdits: func(u protocol.DocumentUri) *protocol.WorkspaceEdit {
 			return &protocol.WorkspaceEdit{
@@ -233,8 +475,15 @@ services:
 						{
 							NewText: "newName",
 							Range: protocol.Range{
-								Start: protocol.Position{Line: 4, Character: 6},
-								End:   protocol.Position{Line: 4, Character: 11},
+								Start: protocol.Position{Line: 4, Character: 8},
+								End:   protocol.Position{Line: 4, Character: 13},
+							},
+						},
+						{
+							NewText: "newName",
+							Range: protocol.Range{
+								Start: protocol.Position{Line: 5, Character: 10},
+								End:   protocol.Position{Line: 5, Character: 15},
 							},
 						},
 					},
@@ -242,18 +491,17 @@ services:
 			}
 		},
 		prepareRename: &protocol.Range{
-			Start: protocol.Position{Line: 4, Character: 6},
-			End:   protocol.Position{Line: 4, Character: 11},
+			Start: protocol.Position{Line: 4, Character: 8},
+			End:   protocol.Position{Line: 4, Character: 13},
 		},
 	},
 	{
-		name: "read highlight on an undefined service object with properties",
+		name: "read highlight on an undefined service object with no properties",
 		content: `
 services:
   test:
     depends_on:
-      test2:
-        condition: service_started`,
+      test2:`,
 		line:      4,
 		character: 9,
 		locations: func(u protocol.DocumentUri) any { return nil },
@@ -282,12 +530,114 @@ services:
 		},
 	},
 	{
-		name: "cursor not on anything meaningful",
+		name: "read highlight on an undefined service object with no properties with the object value anchored",
 		content: `
 services:
   test:
-    depends_on:
-      - test2
+    depends_on: &anchor
+      test2:`,
+		line:      4,
+		character: 9,
+		locations: func(u protocol.DocumentUri) any { return nil },
+		links:     func(u protocol.DocumentUri) any { return nil },
+		ranges: []protocol.DocumentHighlight{
+			documentHighlight(4, 6, 4, 11, protocol.DocumentHighlightKindRead),
+		},
+		renameEdits: func(u protocol.DocumentUri) *protocol.WorkspaceEdit {
+			return &protocol.WorkspaceEdit{
+				Changes: map[protocol.DocumentUri][]protocol.TextEdit{
+					u: {
+						{
+							NewText: "newName",
+							Range: protocol.Range{
+								Start: protocol.Position{Line: 4, Character: 6},
+								End:   protocol.Position{Line: 4, Character: 11},
+							},
+						},
+					},
+				},
+			}
+		},
+		prepareRename: &protocol.Range{
+			Start: protocol.Position{Line: 4, Character: 6},
+			End:   protocol.Position{Line: 4, Character: 11},
+		},
+	},
+	{
+		name: "read highlight on an undefined service object with no properties with the dependency's name anchored",
+		content: `
+services:
+  test:
+    depends_on: { &anchor test2: null }`,
+		line:      3,
+		character: 28,
+		locations: func(u protocol.DocumentUri) any { return nil },
+		links:     func(u protocol.DocumentUri) any { return nil },
+		ranges: []protocol.DocumentHighlight{
+			documentHighlight(3, 26, 3, 31, protocol.DocumentHighlightKindRead),
+		},
+		renameEdits: func(u protocol.DocumentUri) *protocol.WorkspaceEdit {
+			return &protocol.WorkspaceEdit{
+				Changes: map[protocol.DocumentUri][]protocol.TextEdit{
+					u: {
+						{
+							NewText: "newName",
+							Range: protocol.Range{
+								Start: protocol.Position{Line: 3, Character: 26},
+								End:   protocol.Position{Line: 3, Character: 31},
+							},
+						},
+					},
+				},
+			}
+		},
+		prepareRename: &protocol.Range{
+			Start: protocol.Position{Line: 3, Character: 26},
+			End:   protocol.Position{Line: 3, Character: 31},
+		},
+	},
+	{
+		name: "read highlight on an undefined service object with properties",
+		content: `
+services:
+  test:
+    depends_on:
+      test2:
+        condition: service_started`,
+		line:      4,
+		character: 9,
+		locations: func(u protocol.DocumentUri) any { return nil },
+		links:     func(u protocol.DocumentUri) any { return nil },
+		ranges: []protocol.DocumentHighlight{
+			documentHighlight(4, 6, 4, 11, protocol.DocumentHighlightKindRead),
+		},
+		renameEdits: func(u protocol.DocumentUri) *protocol.WorkspaceEdit {
+			return &protocol.WorkspaceEdit{
+				Changes: map[protocol.DocumentUri][]protocol.TextEdit{
+					u: {
+						{
+							NewText: "newName",
+							Range: protocol.Range{
+								Start: protocol.Position{Line: 4, Character: 6},
+								End:   protocol.Position{Line: 4, Character: 11},
+							},
+						},
+					},
+				},
+			}
+		},
+		prepareRename: &protocol.Range{
+			Start: protocol.Position{Line: 4, Character: 6},
+			End:   protocol.Position{Line: 4, Character: 11},
+		},
+	},
+	{
+		name: "cursor not on anything meaningful",
+		content: `
+services:
+  test:
+    depends_on:
+      - test2
       - test2`,
 		line:      3,
 		character: 9,
@@ -360,16 +710,309 @@ services:
 		},
 		links: func(u protocol.DocumentUri) any {
 			return types.CreateDefinitionResult(true, protocol.Range{
-				Start: protocol.Position{Line: 5, Character: 2},
-				End:   protocol.Position{Line: 5, Character: 7},
+				Start: protocol.Position{Line: 5, Character: 2},
+				End:   protocol.Position{Line: 5, Character: 7},
+			}, &protocol.Range{
+				Start: protocol.Position{Line: 4, Character: 8},
+				End:   protocol.Position{Line: 4, Character: 13},
+			}, u)
+		},
+		ranges: []protocol.DocumentHighlight{
+			documentHighlight(4, 8, 4, 13, protocol.DocumentHighlightKindRead),
+			documentHighlight(5, 2, 5, 7, protocol.DocumentHighlightKindWrite),
+		},
+		renameEdits: func(u protocol.DocumentUri) *protocol.WorkspaceEdit {
+			return &protocol.WorkspaceEdit{
+				Changes: map[protocol.DocumentUri][]protocol.TextEdit{
+					u: {
+						{
+							NewText: "newName",
+							Range: protocol.Range{
+								Start: protocol.Position{Line: 4, Character: 8},
+								End:   protocol.Position{Line: 4, Character: 13},
+							},
+						},
+						{
+							NewText: "newName",
+							Range: protocol.Range{
+								Start: protocol.Position{Line: 5, Character: 2},
+								End:   protocol.Position{Line: 5, Character: 7},
+							},
+						},
+					},
+				},
+			}
+		},
+		prepareRename: &protocol.Range{
+			Start: protocol.Position{Line: 4, Character: 8},
+			End:   protocol.Position{Line: 4, Character: 13},
+		},
+	},
+	{
+		name: "read/write highlight on a service's depends_on array string (cursor on write)",
+		content: `
+services:
+  test:
+    depends_on:
+      - test2
+  test2:`,
+		line:      5,
+		character: 5,
+		locations: func(u protocol.DocumentUri) any {
+			return types.CreateDefinitionResult(false, protocol.Range{
+				Start: protocol.Position{Line: 5, Character: 2},
+				End:   protocol.Position{Line: 5, Character: 7},
+			}, nil, u)
+		},
+		links: func(u protocol.DocumentUri) any {
+			return types.CreateDefinitionResult(true, protocol.Range{
+				Start: protocol.Position{Line: 5, Character: 2},
+				End:   protocol.Position{Line: 5, Character: 7},
+			}, &protocol.Range{
+				Start: protocol.Position{Line: 5, Character: 2},
+				End:   protocol.Position{Line: 5, Character: 7},
+			}, u)
+		},
+		ranges: []protocol.DocumentHighlight{
+			documentHighlight(4, 8, 4, 13, protocol.DocumentHighlightKindRead),
+			documentHighlight(5, 2, 5, 7, protocol.DocumentHighlightKindWrite),
+		},
+		renameEdits: func(u protocol.DocumentUri) *protocol.WorkspaceEdit {
+			return &protocol.WorkspaceEdit{
+				Changes: map[protocol.DocumentUri][]protocol.TextEdit{
+					u: {
+						{
+							NewText: "newName",
+							Range: protocol.Range{
+								Start: protocol.Position{Line: 4, Character: 8},
+								End:   protocol.Position{Line: 4, Character: 13},
+							},
+						},
+						{
+							NewText: "newName",
+							Range: protocol.Range{
+								Start: protocol.Position{Line: 5, Character: 2},
+								End:   protocol.Position{Line: 5, Character: 7},
+							},
+						},
+					},
+				},
+			}
+		},
+		prepareRename: &protocol.Range{
+			Start: protocol.Position{Line: 5, Character: 2},
+			End:   protocol.Position{Line: 5, Character: 7},
+		},
+	},
+	{
+		name: "short syntax form of depends_on in services finding the right match",
+		content: `
+services:
+  web:
+    build: .
+    depends_on:
+      - postgres
+      - redis
+  postgres:
+    image: postgres
+  redis:
+    image: redis`,
+		line:      6,
+		character: 11,
+		locations: func(u protocol.DocumentUri) any {
+			return types.CreateDefinitionResult(false, protocol.Range{
+				Start: protocol.Position{Line: 9, Character: 2},
+				End:   protocol.Position{Line: 9, Character: 7},
+			}, nil, u)
+		},
+		links: func(u protocol.DocumentUri) any {
+			return types.CreateDefinitionResult(true, protocol.Range{
+				Start: protocol.Position{Line: 9, Character: 2},
+				End:   protocol.Position{Line: 9, Character: 7},
+			}, &protocol.Range{
+				Start: protocol.Position{Line: 6, Character: 8},
+				End:   protocol.Position{Line: 6, Character: 13},
+			}, u)
+		},
+		ranges: []protocol.DocumentHighlight{
+			documentHighlight(6, 8, 6, 13, protocol.DocumentHighlightKindRead),
+			documentHighlight(9, 2, 9, 7, protocol.DocumentHighlightKindWrite),
+		},
+		renameEdits: func(u protocol.DocumentUri) *protocol.WorkspaceEdit {
+			return &protocol.WorkspaceEdit{
+				Changes: map[protocol.DocumentUri][]protocol.TextEdit{
+					u: {
+						{
+							NewText: "newName",
+							Range: protocol.Range{
+								Start: protocol.Position{Line: 6, Character: 8},
+								End:   protocol.Position{Line: 6, Character: 13},
+							},
+						},
+						{
+							NewText: "newName",
+							Range: protocol.Range{
+								Start: protocol.Position{Line: 9, Character: 2},
+								End:   protocol.Position{Line: 9, Character: 7},
+							},
+						},
+					},
+				},
+			}
+		},
+		prepareRename: &protocol.Range{
+			Start: protocol.Position{Line: 6, Character: 8},
+			End:   protocol.Position{Line: 6, Character: 13},
+		},
+	},
+	{
+		name: "long syntax form of depends_on in services",
+		content: `
+services:
+  web:
+    build: .
+    depends_on:
+      db:
+        condition: service_healthy
+        restart: true
+      redis:
+        condition: service_started
+  db:
+    image: postgres
+  redis:
+    image: redis`,
+		line:      8,
+		character: 9,
+		locations: func(u protocol.DocumentUri) any {
+			return types.CreateDefinitionResult(false, protocol.Range{
+				Start: protocol.Position{Line: 12, Character: 2},
+				End:   protocol.Position{Line: 12, Character: 7},
+			}, nil, u)
+		},
+		links: func(u protocol.DocumentUri) any {
+			return types.CreateDefinitionResult(true, protocol.Range{
+				Start: protocol.Position{Line: 12, Character: 2},
+				End:   protocol.Position{Line: 12, Character: 7},
+			}, &protocol.Range{
+				Start: protocol.Position{Line: 8, Character: 6},
+				End:   protocol.Position{Line: 8, Character: 11},
+			}, u)
+		},
+		ranges: []protocol.DocumentHighlight{
+			documentHighlight(8, 6, 8, 11, protocol.DocumentHighlightKindRead),
+			documentHighlight(12, 2, 12, 7, protocol.DocumentHighlightKindWrite),
+		},
+		renameEdits: func(u protocol.DocumentUri) *protocol.WorkspaceEdit {
+			return &protocol.WorkspaceEdit{
+				Changes: map[protocol.DocumentUri][]protocol.TextEdit{
+					u: {
+						{
+							NewText: "newName",
+							Range: protocol.Range{
+								Start: protocol.Position{Line: 8, Character: 6},
+								End:   protocol.Position{Line: 8, Character: 11},
+							},
+						},
+						{
+							NewText: "newName",
+							Range: protocol.Range{
+								Start: protocol.Position{Line: 12, Character: 2},
+								End:   protocol.Position{Line: 12, Character: 7},
+							},
+						},
+					},
+				},
+			}
+		},
+		prepareRename: &protocol.Range{
+			Start: protocol.Position{Line: 8, Character: 6},
+			End:   protocol.Position{Line: 8, Character: 11},
+		},
+	},
+	{
+		name: "extends as a string attribute",
+		content: `
+services:
+  test:
+    image: alpine
+  test2:
+    extends: test`,
+		line:      5,
+		character: 15,
+		locations: func(u protocol.DocumentUri) any {
+			return types.CreateDefinitionResult(false, protocol.Range{
+				Start: protocol.Position{Line: 2, Character: 2},
+				End:   protocol.Position{Line: 2, Character: 6},
+			}, nil, u)
+		},
+		links: func(u protocol.DocumentUri) any {
+			return types.CreateDefinitionResult(true, protocol.Range{
+				Start: protocol.Position{Line: 2, Character: 2},
+				End:   protocol.Position{Line: 2, Character: 6},
+			}, &protocol.Range{
+				Start: protocol.Position{Line: 5, Character: 13},
+				End:   protocol.Position{Line: 5, Character: 17},
+			}, u)
+		},
+		ranges: []protocol.DocumentHighlight{
+			documentHighlight(2, 2, 2, 6, protocol.DocumentHighlightKindWrite),
+			documentHighlight(5, 13, 5, 17, protocol.DocumentHighlightKindRead),
+		},
+		renameEdits: func(u protocol.DocumentUri) *protocol.WorkspaceEdit {
+			return &protocol.WorkspaceEdit{
+				Changes: map[protocol.DocumentUri][]protocol.TextEdit{
+					u: {
+						{
+							NewText: "newName",
+							Range: protocol.Range{
+								Start: protocol.Position{Line: 2, Character: 2},
+								End:   protocol.Position{Line: 2, Character: 6},
+							},
+						},
+						{
+							NewText: "newName",
+							Range: protocol.Range{
+								Start: protocol.Position{Line: 5, Character: 13},
+								End:   protocol.Position{Line: 5, Character: 17},
+							},
+						},
+					},
+				},
+			}
+		},
+		prepareRename: &protocol.Range{
+			Start: protocol.Position{Line: 5, Character: 13},
+			End:   protocol.Position{Line: 5, Character: 17},
+		},
+	},
+	{
+		name: "extends (with an anchor) as a string attribute value",
+		content: `
+services:
+  test:
+    image: alpine
+  test2:
+    &anchor extends: test`,
+		line:      5,
+		character: 23,
+		locations: func(u protocol.DocumentUri) any {
+			return types.CreateDefinitionResult(false, protocol.Range{
+				Start: protocol.Position{Line: 2, Character: 2},
+				End:   protocol.Position{Line: 2, Character: 6},
+			}, nil, u)
+		},
+		links: func(u protocol.DocumentUri) any {
+			return types.CreateDefinitionResult(true, protocol.Range{
+				Start: protocol.Position{Line: 2, Character: 2},
+				End:   protocol.Position{Line: 2, Character: 6},
 			}, &protocol.Range{
-				Start: protocol.Position{Line: 4, Character: 8},
-				End:   protocol.Position{Line: 4, Character: 13},
+				Start: protocol.Position{Line: 5, Character: 21},
+				End:   protocol.Position{Line: 5, Character: 25},
 			}, u)
 		},
 		ranges: []protocol.DocumentHighlight{
-			documentHighlight(4, 8, 4, 13, protocol.DocumentHighlightKindRead),
-			documentHighlight(5, 2, 5, 7, protocol.DocumentHighlightKindWrite),
+			documentHighlight(2, 2, 2, 6, protocol.DocumentHighlightKindWrite),
+			documentHighlight(5, 21, 5, 25, protocol.DocumentHighlightKindRead),
 		},
 		renameEdits: func(u protocol.DocumentUri) *protocol.WorkspaceEdit {
 			return &protocol.WorkspaceEdit{
@@ -378,15 +1021,15 @@ services:
 						{
 							NewText: "newName",
 							Range: protocol.Range{
-								Start: protocol.Position{Line: 4, Character: 8},
-								End:   protocol.Position{Line: 4, Character: 13},
+								Start: protocol.Position{Line: 2, Character: 2},
+								End:   protocol.Position{Line: 2, Character: 6},
 							},
 						},
 						{
 							NewText: "newName",
 							Range: protocol.Range{
-								Start: protocol.Position{Line: 5, Character: 2},
-								End:   protocol.Position{Line: 5, Character: 7},
+								Start: protocol.Position{Line: 5, Character: 21},
+								End:   protocol.Position{Line: 5, Character: 25},
 							},
 						},
 					},
@@ -394,38 +1037,38 @@ services:
 			}
 		},
 		prepareRename: &protocol.Range{
-			Start: protocol.Position{Line: 4, Character: 8},
-			End:   protocol.Position{Line: 4, Character: 13},
+			Start: protocol.Position{Line: 5, Character: 21},
+			End:   protocol.Position{Line: 5, Character: 25},
 		},
 	},
 	{
-		name: "read/write highlight on a service's depends_on array string (cursor on write)",
+		name: "extends as a string attribute value with an anchor",
 		content: `
 services:
   test:
-    depends_on:
-      - test2
-  test2:`,
+    image: alpine
+  test2:
+    extends: &anchor test`,
 		line:      5,
-		character: 5,
+		character: 23,
 		locations: func(u protocol.DocumentUri) any {
 			return types.CreateDefinitionResult(false, protocol.Range{
-				Start: protocol.Position{Line: 5, Character: 2},
-				End:   protocol.Position{Line: 5, Character: 7},
+				Start: protocol.Position{Line: 2, Character: 2},
+				End:   protocol.Position{Line: 2, Character: 6},
 			}, nil, u)
 		},
 		links: func(u protocol.DocumentUri) any {
 			return types.CreateDefinitionResult(true, protocol.Range{
-				Start: protocol.Position{Line: 5, Character: 2},
-				End:   protocol.Position{Line: 5, Character: 7},
+				Start: protocol.Position{Line: 2, Character: 2},
+				End:   protocol.Position{Line: 2, Character: 6},
 			}, &protocol.Range{
-				Start: protocol.Position{Line: 5, Character: 2},
-				End:   protocol.Position{Line: 5, Character: 7},
+				Start: protocol.Position{Line: 5, Character: 21},
+				End:   protocol.Position{Line: 5, Character: 25},
 			}, u)
 		},
 		ranges: []protocol.DocumentHighlight{
-			documentHighlight(4, 8, 4, 13, protocol.DocumentHighlightKindRead),
-			documentHighlight(5, 2, 5, 7, protocol.DocumentHighlightKindWrite),
+			documentHighlight(2, 2, 2, 6, protocol.DocumentHighlightKindWrite),
+			documentHighlight(5, 21, 5, 25, protocol.DocumentHighlightKindRead),
 		},
 		renameEdits: func(u protocol.DocumentUri) *protocol.WorkspaceEdit {
 			return &protocol.WorkspaceEdit{
@@ -434,15 +1077,15 @@ services:
 						{
 							NewText: "newName",
 							Range: protocol.Range{
-								Start: protocol.Position{Line: 4, Character: 8},
-								End:   protocol.Position{Line: 4, Character: 13},
+								Start: protocol.Position{Line: 2, Character: 2},
+								End:   protocol.Position{Line: 2, Character: 6},
 							},
 						},
 						{
 							NewText: "newName",
 							Range: protocol.Range{
-								Start: protocol.Position{Line: 5, Character: 2},
-								End:   protocol.Position{Line: 5, Character: 7},
+								Start: protocol.Position{Line: 5, Character: 21},
+								End:   protocol.Position{Line: 5, Character: 25},
 							},
 						},
 					},
@@ -450,43 +1093,38 @@ services:
 			}
 		},
 		prepareRename: &protocol.Range{
-			Start: protocol.Position{Line: 5, Character: 2},
-			End:   protocol.Position{Line: 5, Character: 7},
+			Start: protocol.Position{Line: 5, Character: 21},
+			End:   protocol.Position{Line: 5, Character: 25},
 		},
 	},
 	{
-		name: "short syntax form of depends_on in services finding the right match",
+		name: "extends as a quoted string attribute",
 		content: `
 services:
-  web:
-    build: .
-    depends_on:
-      - postgres
-      - redis
-  postgres:
-    image: postgres
-  redis:
-    image: redis`,
-		line:      6,
-		character: 11,
+  test:
+    image: alpine
+  test2:
+    extends: "test"`,
+		line:      5,
+		character: 15,
 		locations: func(u protocol.DocumentUri) any {
 			return types.CreateDefinitionResult(false, protocol.Range{
-				Start: protocol.Position{Line: 9, Character: 2},
-				End:   protocol.Position{Line: 9, Character: 7},
+				Start: protocol.Position{Line: 2, Character: 2},
+				End:   protocol.Position{Line: 2, Character: 6},
 			}, nil, u)
 		},
 		links: func(u protocol.DocumentUri) any {
 			return types.CreateDefinitionResult(true, protocol.Range{
-				Start: protocol.Position{Line: 9, Character: 2},
-				End:   protocol.Position{Line: 9, Character: 7},
+				Start: protocol.Position{Line: 2, Character: 2},
+				End:   protocol.Position{Line: 2, Character: 6},
 			}, &protocol.Range{
-				Start: protocol.Position{Line: 6, Character: 8},
-				End:   protocol.Position{Line: 6, Character: 13},
+				Start: protocol.Position{Line: 5, Character: 14},
+				End:   protocol.Position{Line: 5, Character: 18},
 			}, u)
 		},
 		ranges: []protocol.DocumentHighlight{
-			documentHighlight(6, 8, 6, 13, protocol.DocumentHighlightKindRead),
-			documentHighlight(9, 2, 9, 7, protocol.DocumentHighlightKindWrite),
+			documentHighlight(2, 2, 2, 6, protocol.DocumentHighlightKindWrite),
+			documentHighlight(5, 14, 5, 18, protocol.DocumentHighlightKindRead),
 		},
 		renameEdits: func(u protocol.DocumentUri) *protocol.WorkspaceEdit {
 			return &protocol.WorkspaceEdit{
@@ -495,15 +1133,15 @@ services:
 						{
 							NewText: "newName",
 							Range: protocol.Range{
-								Start: protocol.Position{Line: 6, Character: 8},
-								End:   protocol.Position{Line: 6, Character: 13},
+								Start: protocol.Position{Line: 2, Character: 2},
+								End:   protocol.Position{Line: 2, Character: 6},
 							},
 						},
 						{
 							NewText: "newName",
 							Range: protocol.Range{
-								Start: protocol.Position{Line: 9, Character: 2},
-								End:   protocol.Position{Line: 9, Character: 7},
+								Start: protocol.Position{Line: 5, Character: 14},
+								End:   protocol.Position{Line: 5, Character: 18},
 							},
 						},
 					},
@@ -511,46 +1149,39 @@ services:
 			}
 		},
 		prepareRename: &protocol.Range{
-			Start: protocol.Position{Line: 6, Character: 8},
-			End:   protocol.Position{Line: 6, Character: 13},
+			Start: protocol.Position{Line: 5, Character: 14},
+			End:   protocol.Position{Line: 5, Character: 18},
 		},
 	},
 	{
-		name: "long syntax form of depends_on in services",
+		name: "extends as an object without a file attribute",
 		content: `
 services:
-  web:
-    build: .
-    depends_on:
-      db:
-        condition: service_healthy
-        restart: true
-      redis:
-        condition: service_started
-  db:
-    image: postgres
-  redis:
-    image: redis`,
-		line:      8,
-		character: 9,
+  test:
+    image: alpine
+  test2:
+    extends:
+      service: test`,
+		line:      6,
+		character: 17,
 		locations: func(u protocol.DocumentUri) any {
 			return types.CreateDefinitionResult(false, protocol.Range{
-				Start: protocol.Position{Line: 12, Character: 2},
-				End:   protocol.Position{Line: 12, Character: 7},
+				Start: protocol.Position{Line: 2, Character: 2},
+				End:   protocol.Position{Line: 2, Character: 6},
 			}, nil, u)
 		},
 		links: func(u protocol.DocumentUri) any {
 			return types.CreateDefinitionResult(true, protocol.Range{
-				Start: protocol.Position{Line: 12, Character: 2},
-				End:   protocol.Position{Line: 12, Character: 7},
+				Start: protocol.Position{Line: 2, Character: 2},
+				End:   protocol.Position{Line: 2, Character: 6},
 			}, &protocol.Range{
-				Start: protocol.Position{Line: 8, Character: 6},
-				End:   protocol.Position{Line: 8, Character: 11},
+				Start: protocol.Position{Line: 6, Character: 15},
+				End:   protocol.Position{Line: 6, Character: 19},
 			}, u)
 		},
 		ranges: []protocol.DocumentHighlight{
-			documentHighlight(8, 6, 8, 11, protocol.DocumentHighlightKindRead),
-			documentHighlight(12, 2, 12, 7, protocol.DocumentHighlightKindWrite),
+			documentHighlight(2, 2, 2, 6, protocol.DocumentHighlightKindWrite),
+			documentHighlight(6, 15, 6, 19, protocol.DocumentHighlightKindRead),
 		},
 		renameEdits: func(u protocol.DocumentUri) *protocol.WorkspaceEdit {
 			return &protocol.WorkspaceEdit{
@@ -559,15 +1190,15 @@ services:
 						{
 							NewText: "newName",
 							Range: protocol.Range{
-								Start: protocol.Position{Line: 8, Character: 6},
-								End:   protocol.Position{Line: 8, Character: 11},
+								Start: protocol.Position{Line: 2, Character: 2},
+								End:   protocol.Position{Line: 2, Character: 6},
 							},
 						},
 						{
 							NewText: "newName",
 							Range: protocol.Range{
-								Start: protocol.Position{Line: 12, Character: 2},
-								End:   protocol.Position{Line: 12, Character: 7},
+								Start: protocol.Position{Line: 6, Character: 15},
+								End:   protocol.Position{Line: 6, Character: 19},
 							},
 						},
 					},
@@ -575,20 +1206,21 @@ services:
 			}
 		},
 		prepareRename: &protocol.Range{
-			Start: protocol.Position{Line: 8, Character: 6},
-			End:   protocol.Position{Line: 8, Character: 11},
+			Start: protocol.Position{Line: 6, Character: 15},
+			End:   protocol.Position{Line: 6, Character: 19},
 		},
 	},
 	{
-		name: "extends as a string attribute",
+		name: "extends as an object with its value as an anchor",
 		content: `
 services:
   test:
     image: alpine
   test2:
-    extends: test`,
-		line:      5,
-		character: 15,
+    extends: &anchor
+      service: test`,
+		line:      6,
+		character: 17,
 		locations: func(u protocol.DocumentUri) any {
 			return types.CreateDefinitionResult(false, protocol.Range{
 				Start: protocol.Position{Line: 2, Character: 2},
@@ -600,13 +1232,13 @@ services:
 				Start: protocol.Position{Line: 2, Character: 2},
 				End:   protocol.Position{Line: 2, Character: 6},
 			}, &protocol.Range{
-				Start: protocol.Position{Line: 5, Character: 13},
-				End:   protocol.Position{Line: 5, Character: 17},
+				Start: protocol.Position{Line: 6, Character: 15},
+				End:   protocol.Position{Line: 6, Character: 19},
 			}, u)
 		},
 		ranges: []protocol.DocumentHighlight{
 			documentHighlight(2, 2, 2, 6, protocol.DocumentHighlightKindWrite),
-			documentHighlight(5, 13, 5, 17, protocol.DocumentHighlightKindRead),
+			documentHighlight(6, 15, 6, 19, protocol.DocumentHighlightKindRead),
 		},
 		renameEdits: func(u protocol.DocumentUri) *protocol.WorkspaceEdit {
 			return &protocol.WorkspaceEdit{
@@ -622,8 +1254,8 @@ services:
 						{
 							NewText: "newName",
 							Range: protocol.Range{
-								Start: protocol.Position{Line: 5, Character: 13},
-								End:   protocol.Position{Line: 5, Character: 17},
+								Start: protocol.Position{Line: 6, Character: 15},
+								End:   protocol.Position{Line: 6, Character: 19},
 							},
 						},
 					},
@@ -631,20 +1263,21 @@ services:
 			}
 		},
 		prepareRename: &protocol.Range{
-			Start: protocol.Position{Line: 5, Character: 13},
-			End:   protocol.Position{Line: 5, Character: 17},
+			Start: protocol.Position{Line: 6, Character: 15},
+			End:   protocol.Position{Line: 6, Character: 19},
 		},
 	},
 	{
-		name: "extends as a quoted string attribute",
+		name: "extends as an object without a file attribute with an anchor on the service attribute's name",
 		content: `
 services:
   test:
     image: alpine
   test2:
-    extends: "test"`,
-		line:      5,
-		character: 15,
+    extends:
+      &anchor service: test`,
+		line:      6,
+		character: 25,
 		locations: func(u protocol.DocumentUri) any {
 			return types.CreateDefinitionResult(false, protocol.Range{
 				Start: protocol.Position{Line: 2, Character: 2},
@@ -656,13 +1289,13 @@ services:
 				Start: protocol.Position{Line: 2, Character: 2},
 				End:   protocol.Position{Line: 2, Character: 6},
 			}, &protocol.Range{
-				Start: protocol.Position{Line: 5, Character: 14},
-				End:   protocol.Position{Line: 5, Character: 18},
+				Start: protocol.Position{Line: 6, Character: 23},
+				End:   protocol.Position{Line: 6, Character: 27},
 			}, u)
 		},
 		ranges: []protocol.DocumentHighlight{
 			documentHighlight(2, 2, 2, 6, protocol.DocumentHighlightKindWrite),
-			documentHighlight(5, 14, 5, 18, protocol.DocumentHighlightKindRead),
+			documentHighlight(6, 23, 6, 27, protocol.DocumentHighlightKindRead),
 		},
 		renameEdits: func(u protocol.DocumentUri) *protocol.WorkspaceEdit {
 			return &protocol.WorkspaceEdit{
@@ -678,8 +1311,8 @@ services:
 						{
 							NewText: "newName",
 							Range: protocol.Range{
-								Start: protocol.Position{Line: 5, Character: 14},
-								End:   protocol.Position{Line: 5, Character: 18},
+								Start: protocol.Position{Line: 6, Character: 23},
+								End:   protocol.Position{Line: 6, Character: 27},
 							},
 						},
 					},
@@ -687,21 +1320,21 @@ services:
 			}
 		},
 		prepareRename: &protocol.Range{
-			Start: protocol.Position{Line: 5, Character: 14},
-			End:   protocol.Position{Line: 5, Character: 18},
+			Start: protocol.Position{Line: 6, Character: 23},
+			End:   protocol.Position{Line: 6, Character: 27},
 		},
 	},
 	{
-		name: "extends as an object without a file attribute",
+		name: "extends as an object without a file attribute with an anchor on the service attribute's value",
 		content: `
 services:
   test:
     image: alpine
   test2:
     extends:
-      service: test`,
+      service: &anchor test`,
 		line:      6,
-		character: 17,
+		character: 25,
 		locations: func(u protocol.DocumentUri) any {
 			return types.CreateDefinitionResult(false, protocol.Range{
 				Start: protocol.Position{Line: 2, Character: 2},
@@ -713,13 +1346,13 @@ services:
 				Start: protocol.Position{Line: 2, Character: 2},
 				End:   protocol.Position{Line: 2, Character: 6},
 			}, &protocol.Range{
-				Start: protocol.Position{Line: 6, Character: 15},
-				End:   protocol.Position{Line: 6, Character: 19},
+				Start: protocol.Position{Line: 6, Character: 23},
+				End:   protocol.Position{Line: 6, Character: 27},
 			}, u)
 		},
 		ranges: []protocol.DocumentHighlight{
 			documentHighlight(2, 2, 2, 6, protocol.DocumentHighlightKindWrite),
-			documentHighlight(6, 15, 6, 19, protocol.DocumentHighlightKindRead),
+			documentHighlight(6, 23, 6, 27, protocol.DocumentHighlightKindRead),
 		},
 		renameEdits: func(u protocol.DocumentUri) *protocol.WorkspaceEdit {
 			return &protocol.WorkspaceEdit{
@@ -735,8 +1368,8 @@ services:
 						{
 							NewText: "newName",
 							Range: protocol.Range{
-								Start: protocol.Position{Line: 6, Character: 15},
-								End:   protocol.Position{Line: 6, Character: 19},
+								Start: protocol.Position{Line: 6, Character: 23},
+								End:   protocol.Position{Line: 6, Character: 27},
 							},
 						},
 					},
@@ -744,8 +1377,8 @@ services:
 			}
 		},
 		prepareRename: &protocol.Range{
-			Start: protocol.Position{Line: 6, Character: 15},
-			End:   protocol.Position{Line: 6, Character: 19},
+			Start: protocol.Position{Line: 6, Character: 23},
+			End:   protocol.Position{Line: 6, Character: 27},
 		},
 	},
 	{
@@ -766,37 +1399,107 @@ services:
 		renameEdits: func(u protocol.DocumentUri) *protocol.WorkspaceEdit {
 			return nil
 		},
-		prepareRename: nil,
+		prepareRename: nil,
+	},
+	{
+		name: "extends as an object with a file attribute with an anchor that points to a non-existent file",
+		content: `
+services:
+  test:
+    image: alpine
+  test2:
+    extends:
+      service: test
+      &anchor file: non-existent.yaml`,
+		line:      6,
+		character: 17,
+		locations: func(u protocol.DocumentUri) any { return nil },
+		links:     func(u protocol.DocumentUri) any { return nil },
+		ranges:    nil,
+		renameEdits: func(u protocol.DocumentUri) *protocol.WorkspaceEdit {
+			return nil
+		},
+		prepareRename: nil,
+	},
+	{
+		name: "anchor name conflicts with a depends_on service (cursor on anchor)",
+		content: `
+services:
+  first: &second
+    image: scratch
+    depends_on:
+      - second
+  second:
+    image: scratch`,
+		line:      2,
+		character: 13,
+		locations: func(u protocol.DocumentUri) any {
+			return types.CreateDefinitionResult(false, protocol.Range{
+				Start: protocol.Position{Line: 2, Character: 10},
+				End:   protocol.Position{Line: 2, Character: 16},
+			}, nil, u)
+		},
+		links: func(u protocol.DocumentUri) any {
+			return types.CreateDefinitionResult(true, protocol.Range{
+				Start: protocol.Position{Line: 2, Character: 10},
+				End:   protocol.Position{Line: 2, Character: 16},
+			}, &protocol.Range{
+				Start: protocol.Position{Line: 2, Character: 10},
+				End:   protocol.Position{Line: 2, Character: 16},
+			}, u)
+		},
+		ranges: []protocol.DocumentHighlight{
+			documentHighlight(2, 10, 2, 16, protocol.DocumentHighlightKindWrite),
+		},
+		renameEdits: func(u protocol.DocumentUri) *protocol.WorkspaceEdit {
+			return &protocol.WorkspaceEdit{
+				Changes: map[protocol.DocumentUri][]protocol.TextEdit{
+					u: {
+						{
+							NewText: "newName",
+							Range: protocol.Range{
+								Start: protocol.Position{Line: 2, Character: 10},
+								End:   protocol.Position{Line: 2, Character: 16},
+							},
+						},
+					},
+				},
+			}
+		},
+		prepareRename: &protocol.Range{
+			Start: protocol.Position{Line: 2, Character: 10},
+			End:   protocol.Position{Line: 2, Character: 16},
+		},
 	},
 	{
-		name: "anchor name conflicts with a depends_on service (cursor on anchor)",
+		name: "nested anchor within an anchored MappingNode",
 		content: `
 services:
   first: &second
-    image: scratch
+    image: &another scratch
     depends_on:
       - second
   second:
     image: scratch`,
-		line:      2,
-		character: 13,
+		line:      3,
+		character: 15,
 		locations: func(u protocol.DocumentUri) any {
 			return types.CreateDefinitionResult(false, protocol.Range{
-				Start: protocol.Position{Line: 2, Character: 10},
-				End:   protocol.Position{Line: 2, Character: 16},
+				Start: protocol.Position{Line: 3, Character: 12},
+				End:   protocol.Position{Line: 3, Character: 19},
 			}, nil, u)
 		},
 		links: func(u protocol.DocumentUri) any {
 			return types.CreateDefinitionResult(true, protocol.Range{
-				Start: protocol.Position{Line: 2, Character: 10},
-				End:   protocol.Position{Line: 2, Character: 16},
+				Start: protocol.Position{Line: 3, Character: 12},
+				End:   protocol.Position{Line: 3, Character: 19},
 			}, &protocol.Range{
-				Start: protocol.Position{Line: 2, Character: 10},
-				End:   protocol.Position{Line: 2, Character: 16},
+				Start: protocol.Position{Line: 3, Character: 12},
+				End:   protocol.Position{Line: 3, Character: 19},
 			}, u)
 		},
 		ranges: []protocol.DocumentHighlight{
-			documentHighlight(2, 10, 2, 16, protocol.DocumentHighlightKindWrite),
+			documentHighlight(3, 12, 3, 19, protocol.DocumentHighlightKindWrite),
 		},
 		renameEdits: func(u protocol.DocumentUri) *protocol.WorkspaceEdit {
 			return &protocol.WorkspaceEdit{
@@ -805,8 +1508,8 @@ services:
 						{
 							NewText: "newName",
 							Range: protocol.Range{
-								Start: protocol.Position{Line: 2, Character: 10},
-								End:   protocol.Position{Line: 2, Character: 16},
+								Start: protocol.Position{Line: 3, Character: 12},
+								End:   protocol.Position{Line: 3, Character: 19},
 							},
 						},
 					},
@@ -814,8 +1517,8 @@ services:
 			}
 		},
 		prepareRename: &protocol.Range{
-			Start: protocol.Position{Line: 2, Character: 10},
-			End:   protocol.Position{Line: 2, Character: 16},
+			Start: protocol.Position{Line: 3, Character: 12},
+			End:   protocol.Position{Line: 3, Character: 19},
 		},
 	},
 	{
@@ -1100,6 +1803,18 @@ services:
 			End:   protocol.Position{Line: 6, Character: 8},
 		},
 	},
+	{
+		name: "invalid services value",
+		content: `
+services: true`,
+		line:          1,
+		character:     12,
+		locations:     func(u protocol.DocumentUri) any { return nil },
+		links:         func(u protocol.DocumentUri) any { return nil },
+		ranges:        nil,
+		renameEdits:   func(u protocol.DocumentUri) *protocol.WorkspaceEdit { return nil },
+		prepareRename: nil,
+	},
 }
 
 func TestDocumentHighlight_Services(t *testing.T) {
@@ -1133,6 +1848,51 @@ var networkReferenceTestCases = []struct {
 		name: "write highlight on a network",
 		content: `
 networks:
+  test:`,
+		line:      2,
+		character: 4,
+		locations: func(u protocol.DocumentUri) any {
+			return types.CreateDefinitionResult(false, protocol.Range{
+				Start: protocol.Position{Line: 2, Character: 2},
+				End:   protocol.Position{Line: 2, Character: 6},
+			}, nil, u)
+		},
+		links: func(u protocol.DocumentUri) any {
+			return types.CreateDefinitionResult(true, protocol.Range{
+				Start: protocol.Position{Line: 2, Character: 2},
+				End:   protocol.Position{Line: 2, Character: 6},
+			}, &protocol.Range{
+				Start: protocol.Position{Line: 2, Character: 2},
+				End:   protocol.Position{Line: 2, Character: 6},
+			}, u)
+		},
+		ranges: []protocol.DocumentHighlight{
+			documentHighlight(2, 2, 2, 6, protocol.DocumentHighlightKindWrite),
+		},
+		renameEdits: func(u protocol.DocumentUri) *protocol.WorkspaceEdit {
+			return &protocol.WorkspaceEdit{
+				Changes: map[protocol.DocumentUri][]protocol.TextEdit{
+					u: {
+						{
+							NewText: "newName",
+							Range: protocol.Range{
+								Start: protocol.Position{Line: 2, Character: 2},
+								End:   protocol.Position{Line: 2, Character: 6},
+							},
+						},
+					},
+				},
+			}
+		},
+		prepareRename: &protocol.Range{
+			Start: protocol.Position{Line: 2, Character: 2},
+			End:   protocol.Position{Line: 2, Character: 6},
+		},
+	},
+	{
+		name: "write highlight on a network with the networks object anchored",
+		content: `
+networks: &anchor
   test:`,
 		line:      2,
 		character: 4,
@@ -1696,15 +2456,199 @@ networks:
 						{
 							NewText: "newName",
 							Range: protocol.Range{
-								Start: protocol.Position{Line: 5, Character: 8},
-								End:   protocol.Position{Line: 5, Character: 14},
-							},
-						},
-						{
-							NewText: "newName",
-							Range: protocol.Range{
-								Start: protocol.Position{Line: 7, Character: 2},
-								End:   protocol.Position{Line: 7, Character: 8},
+								Start: protocol.Position{Line: 5, Character: 8},
+								End:   protocol.Position{Line: 5, Character: 14},
+							},
+						},
+						{
+							NewText: "newName",
+							Range: protocol.Range{
+								Start: protocol.Position{Line: 7, Character: 2},
+								End:   protocol.Position{Line: 7, Character: 8},
+							},
+						},
+					},
+				},
+			}
+		},
+		prepareRename: &protocol.Range{
+			Start: protocol.Position{Line: 7, Character: 2},
+			End:   protocol.Position{Line: 7, Character: 8},
+		},
+	},
+}
+
+func TestDocumentHighlight_Networks(t *testing.T) {
+	composeFileURI := fmt.Sprintf("file:///%v", strings.TrimPrefix(filepath.ToSlash(filepath.Join(os.TempDir(), "compose.yaml")), "/"))
+	u := uri.URI(composeFileURI)
+	for _, tc := range networkReferenceTestCases {
+		t.Run(tc.name, func(t *testing.T) {
+			doc := document.NewComposeDocument(document.NewDocumentManager(), u, 1, []byte(tc.content))
+			ranges, err := DocumentHighlight(doc, protocol.Position{Line: tc.line, Character: tc.character})
+			require.NoError(t, err)
+			require.Equal(t, tc.ranges, ranges)
+		})
+	}
+}
+
+var volumeReferenceTestCases = []struct {
+	name          string
+	content       string
+	line          protocol.UInteger
+	character     protocol.UInteger
+	locations     func(protocol.DocumentUri) any
+	links         func(protocol.DocumentUri) any
+	ranges        []protocol.DocumentHighlight
+	renameEdits   func(protocol.DocumentUri) *protocol.WorkspaceEdit
+	prepareRename *protocol.Range
+}{
+	{
+		name: "write highlight on a volumes",
+		content: `
+volumes:
+  test:`,
+		line:      2,
+		character: 4,
+		locations: func(u protocol.DocumentUri) any {
+			return types.CreateDefinitionResult(false, protocol.Range{
+				Start: protocol.Position{Line: 2, Character: 2},
+				End:   protocol.Position{Line: 2, Character: 6},
+			}, nil, u)
+		},
+		links: func(u protocol.DocumentUri) any {
+			return types.CreateDefinitionResult(true, protocol.Range{
+				Start: protocol.Position{Line: 2, Character: 2},
+				End:   protocol.Position{Line: 2, Character: 6},
+			}, &protocol.Range{
+				Start: protocol.Position{Line: 2, Character: 2},
+				End:   protocol.Position{Line: 2, Character: 6},
+			}, u)
+		},
+		ranges: []protocol.DocumentHighlight{
+			documentHighlight(2, 2, 2, 6, protocol.DocumentHighlightKindWrite),
+		},
+		renameEdits: func(u protocol.DocumentUri) *protocol.WorkspaceEdit {
+			return &protocol.WorkspaceEdit{
+				Changes: map[protocol.DocumentUri][]protocol.TextEdit{
+					u: {
+						{
+							NewText: "newName",
+							Range: protocol.Range{
+								Start: protocol.Position{Line: 2, Character: 2},
+								End:   protocol.Position{Line: 2, Character: 6},
+							},
+						},
+					},
+				},
+			}
+		},
+		prepareRename: &protocol.Range{
+			Start: protocol.Position{Line: 2, Character: 2},
+			End:   protocol.Position{Line: 2, Character: 6},
+		},
+	},
+	{
+		name: "write highlight on a volumes with the volumes object value anchored",
+		content: `
+volumes: &anchor
+  test:`,
+		line:      2,
+		character: 4,
+		locations: func(u protocol.DocumentUri) any {
+			return types.CreateDefinitionResult(false, protocol.Range{
+				Start: protocol.Position{Line: 2, Character: 2},
+				End:   protocol.Position{Line: 2, Character: 6},
+			}, nil, u)
+		},
+		links: func(u protocol.DocumentUri) any {
+			return types.CreateDefinitionResult(true, protocol.Range{
+				Start: protocol.Position{Line: 2, Character: 2},
+				End:   protocol.Position{Line: 2, Character: 6},
+			}, &protocol.Range{
+				Start: protocol.Position{Line: 2, Character: 2},
+				End:   protocol.Position{Line: 2, Character: 6},
+			}, u)
+		},
+		ranges: []protocol.DocumentHighlight{
+			documentHighlight(2, 2, 2, 6, protocol.DocumentHighlightKindWrite),
+		},
+		renameEdits: func(u protocol.DocumentUri) *protocol.WorkspaceEdit {
+			return &protocol.WorkspaceEdit{
+				Changes: map[protocol.DocumentUri][]protocol.TextEdit{
+					u: {
+						{
+							NewText: "newName",
+							Range: protocol.Range{
+								Start: protocol.Position{Line: 2, Character: 2},
+								End:   protocol.Position{Line: 2, Character: 6},
+							},
+						},
+					},
+				},
+			}
+		},
+		prepareRename: &protocol.Range{
+			Start: protocol.Position{Line: 2, Character: 2},
+			End:   protocol.Position{Line: 2, Character: 6},
+		},
+	},
+	{
+		name: "read highlight on an undefined volume array item",
+		content: `
+services:
+  test:
+    volumes:
+      - test2`,
+		line:      4,
+		character: 10,
+		locations: func(u protocol.DocumentUri) any { return nil },
+		links:     func(u protocol.DocumentUri) any { return nil },
+		ranges: []protocol.DocumentHighlight{
+			documentHighlight(4, 8, 4, 13, protocol.DocumentHighlightKindRead),
+		},
+		renameEdits: func(u protocol.DocumentUri) *protocol.WorkspaceEdit {
+			return &protocol.WorkspaceEdit{
+				Changes: map[protocol.DocumentUri][]protocol.TextEdit{
+					u: {
+						{
+							NewText: "newName",
+							Range: protocol.Range{
+								Start: protocol.Position{Line: 4, Character: 8},
+								End:   protocol.Position{Line: 4, Character: 13},
+							},
+						},
+					},
+				},
+			}
+		},
+		prepareRename: &protocol.Range{
+			Start: protocol.Position{Line: 4, Character: 8},
+			End:   protocol.Position{Line: 4, Character: 13},
+		},
+	},
+	{
+		name: "read highlight on an undefined volume array item with the volumes array anchored",
+		content: `
+services:
+  test:
+    &anchor volumes:
+      - test2`,
+		line:      4,
+		character: 10,
+		locations: func(u protocol.DocumentUri) any { return nil },
+		links:     func(u protocol.DocumentUri) any { return nil },
+		ranges: []protocol.DocumentHighlight{
+			documentHighlight(4, 8, 4, 13, protocol.DocumentHighlightKindRead),
+		},
+		renameEdits: func(u protocol.DocumentUri) *protocol.WorkspaceEdit {
+			return &protocol.WorkspaceEdit{
+				Changes: map[protocol.DocumentUri][]protocol.TextEdit{
+					u: {
+						{
+							NewText: "newName",
+							Range: protocol.Range{
+								Start: protocol.Position{Line: 4, Character: 8},
+								End:   protocol.Position{Line: 4, Character: 13},
 							},
 						},
 					},
@@ -1712,60 +2656,23 @@ networks:
 			}
 		},
 		prepareRename: &protocol.Range{
-			Start: protocol.Position{Line: 7, Character: 2},
-			End:   protocol.Position{Line: 7, Character: 8},
+			Start: protocol.Position{Line: 4, Character: 8},
+			End:   protocol.Position{Line: 4, Character: 13},
 		},
 	},
-}
-
-func TestDocumentHighlight_Networks(t *testing.T) {
-	composeFileURI := fmt.Sprintf("file:///%v", strings.TrimPrefix(filepath.ToSlash(filepath.Join(os.TempDir(), "compose.yaml")), "/"))
-	u := uri.URI(composeFileURI)
-	for _, tc := range networkReferenceTestCases {
-		t.Run(tc.name, func(t *testing.T) {
-			doc := document.NewComposeDocument(document.NewDocumentManager(), u, 1, []byte(tc.content))
-			ranges, err := DocumentHighlight(doc, protocol.Position{Line: tc.line, Character: tc.character})
-			require.NoError(t, err)
-			require.Equal(t, tc.ranges, ranges)
-		})
-	}
-}
-
-var volumeReferenceTestCases = []struct {
-	name          string
-	content       string
-	line          protocol.UInteger
-	character     protocol.UInteger
-	locations     func(protocol.DocumentUri) any
-	links         func(protocol.DocumentUri) any
-	ranges        []protocol.DocumentHighlight
-	renameEdits   func(protocol.DocumentUri) *protocol.WorkspaceEdit
-	prepareRename *protocol.Range
-}{
 	{
-		name: "write highlight on a volumes",
+		name: "read highlight on an undefined volume array item with an array value anchor",
 		content: `
-volumes:
-  test:`,
-		line:      2,
-		character: 4,
-		locations: func(u protocol.DocumentUri) any {
-			return types.CreateDefinitionResult(false, protocol.Range{
-				Start: protocol.Position{Line: 2, Character: 2},
-				End:   protocol.Position{Line: 2, Character: 6},
-			}, nil, u)
-		},
-		links: func(u protocol.DocumentUri) any {
-			return types.CreateDefinitionResult(true, protocol.Range{
-				Start: protocol.Position{Line: 2, Character: 2},
-				End:   protocol.Position{Line: 2, Character: 6},
-			}, &protocol.Range{
-				Start: protocol.Position{Line: 2, Character: 2},
-				End:   protocol.Position{Line: 2, Character: 6},
-			}, u)
-		},
+services:
+  test:
+    volumes: &anchor
+      - test2`,
+		line:      4,
+		character: 10,
+		locations: func(u protocol.DocumentUri) any { return nil },
+		links:     func(u protocol.DocumentUri) any { return nil },
 		ranges: []protocol.DocumentHighlight{
-			documentHighlight(2, 2, 2, 6, protocol.DocumentHighlightKindWrite),
+			documentHighlight(4, 8, 4, 13, protocol.DocumentHighlightKindRead),
 		},
 		renameEdits: func(u protocol.DocumentUri) *protocol.WorkspaceEdit {
 			return &protocol.WorkspaceEdit{
@@ -1774,8 +2681,8 @@ volumes:
 						{
 							NewText: "newName",
 							Range: protocol.Range{
-								Start: protocol.Position{Line: 2, Character: 2},
-								End:   protocol.Position{Line: 2, Character: 6},
+								Start: protocol.Position{Line: 4, Character: 8},
+								End:   protocol.Position{Line: 4, Character: 13},
 							},
 						},
 					},
@@ -1783,23 +2690,23 @@ volumes:
 			}
 		},
 		prepareRename: &protocol.Range{
-			Start: protocol.Position{Line: 2, Character: 2},
-			End:   protocol.Position{Line: 2, Character: 6},
+			Start: protocol.Position{Line: 4, Character: 8},
+			End:   protocol.Position{Line: 4, Character: 13},
 		},
 	},
 	{
-		name: "read highlight on an undefined volume array item",
+		name: "read highlight on an undefined volume array item with a string anchor",
 		content: `
 services:
   test:
     volumes:
-      - test2`,
+      - &anchor test2`,
 		line:      4,
-		character: 10,
+		character: 18,
 		locations: func(u protocol.DocumentUri) any { return nil },
 		links:     func(u protocol.DocumentUri) any { return nil },
 		ranges: []protocol.DocumentHighlight{
-			documentHighlight(4, 8, 4, 13, protocol.DocumentHighlightKindRead),
+			documentHighlight(4, 16, 4, 21, protocol.DocumentHighlightKindRead),
 		},
 		renameEdits: func(u protocol.DocumentUri) *protocol.WorkspaceEdit {
 			return &protocol.WorkspaceEdit{
@@ -1808,8 +2715,8 @@ services:
 						{
 							NewText: "newName",
 							Range: protocol.Range{
-								Start: protocol.Position{Line: 4, Character: 8},
-								End:   protocol.Position{Line: 4, Character: 13},
+								Start: protocol.Position{Line: 4, Character: 16},
+								End:   protocol.Position{Line: 4, Character: 21},
 							},
 						},
 					},
@@ -1817,8 +2724,8 @@ services:
 			}
 		},
 		prepareRename: &protocol.Range{
-			Start: protocol.Position{Line: 4, Character: 8},
-			End:   protocol.Position{Line: 4, Character: 13},
+			Start: protocol.Position{Line: 4, Character: 16},
+			End:   protocol.Position{Line: 4, Character: 21},
 		},
 	},
 	{
@@ -1957,6 +2864,131 @@ services:
 			End:   protocol.Position{Line: 4, Character: 21},
 		},
 	},
+	{
+		name: "read highlight on an undefined volume array item object's source with an anchor attribute name",
+		content: `
+services:
+  test:
+    volumes:
+      - &anchor source: test2`,
+		line:      4,
+		character: 26,
+		locations: func(u protocol.DocumentUri) any { return nil },
+		links:     func(u protocol.DocumentUri) any { return nil },
+		ranges: []protocol.DocumentHighlight{
+			documentHighlight(4, 24, 4, 29, protocol.DocumentHighlightKindRead),
+		},
+		renameEdits: func(u protocol.DocumentUri) *protocol.WorkspaceEdit {
+			return &protocol.WorkspaceEdit{
+				Changes: map[protocol.DocumentUri][]protocol.TextEdit{
+					u: {
+						{
+							NewText: "newName",
+							Range: protocol.Range{
+								Start: protocol.Position{Line: 4, Character: 24},
+								End:   protocol.Position{Line: 4, Character: 29},
+							},
+						},
+					},
+				},
+			}
+		},
+		prepareRename: &protocol.Range{
+			Start: protocol.Position{Line: 4, Character: 24},
+			End:   protocol.Position{Line: 4, Character: 29},
+		},
+	},
+	{
+		name: "read highlight on an undefined volume array item object's source with an anchor attribute value",
+		content: `
+services:
+  test:
+    volumes:
+      - source: &anchor test2`,
+		line:      4,
+		character: 26,
+		locations: func(u protocol.DocumentUri) any { return nil },
+		links:     func(u protocol.DocumentUri) any { return nil },
+		ranges: []protocol.DocumentHighlight{
+			documentHighlight(4, 24, 4, 29, protocol.DocumentHighlightKindRead),
+		},
+		renameEdits: func(u protocol.DocumentUri) *protocol.WorkspaceEdit {
+			return &protocol.WorkspaceEdit{
+				Changes: map[protocol.DocumentUri][]protocol.TextEdit{
+					u: {
+						{
+							NewText: "newName",
+							Range: protocol.Range{
+								Start: protocol.Position{Line: 4, Character: 24},
+								End:   protocol.Position{Line: 4, Character: 29},
+							},
+						},
+					},
+				},
+			}
+		},
+		prepareRename: &protocol.Range{
+			Start: protocol.Position{Line: 4, Character: 24},
+			End:   protocol.Position{Line: 4, Character: 29},
+		},
+	},
+	{
+		name: "read highlight on an undefined volume array item object's source with an anchor on the object itself",
+		content: `
+services:
+  test:
+    volumes:
+      - &anchor { source: vol, target: /mount, type: volume }
+volumes:
+  vol:`,
+		line:      4,
+		character: 28,
+		locations: func(u protocol.DocumentUri) any {
+			return types.CreateDefinitionResult(false, protocol.Range{
+				Start: protocol.Position{Line: 6, Character: 2},
+				End:   protocol.Position{Line: 6, Character: 5},
+			}, nil, u)
+		},
+		links: func(u protocol.DocumentUri) any {
+			return types.CreateDefinitionResult(true, protocol.Range{
+				Start: protocol.Position{Line: 6, Character: 2},
+				End:   protocol.Position{Line: 6, Character: 5},
+			}, &protocol.Range{
+				Start: protocol.Position{Line: 4, Character: 26},
+				End:   protocol.Position{Line: 4, Character: 29},
+			}, u)
+		},
+		ranges: []protocol.DocumentHighlight{
+			documentHighlight(4, 26, 4, 29, protocol.DocumentHighlightKindRead),
+			documentHighlight(6, 2, 6, 5, protocol.DocumentHighlightKindWrite),
+		},
+		renameEdits: func(u protocol.DocumentUri) *protocol.WorkspaceEdit {
+			return &protocol.WorkspaceEdit{
+				Changes: map[protocol.DocumentUri][]protocol.TextEdit{
+					u: {
+						{
+							NewText: "newName",
+							Range: protocol.Range{
+								Start: protocol.Position{Line: 4, Character: 26},
+								End:   protocol.Position{Line: 4, Character: 29},
+							},
+						},
+						{
+							NewText: "newName",
+							Range: protocol.Range{
+								Start: protocol.Position{Line: 6, Character: 2},
+								End:   protocol.Position{Line: 6, Character: 5},
+							},
+						},
+					},
+				},
+			}
+		},
+		prepareRename: &protocol.Range{
+			Start: protocol.Position{Line: 4, Character: 26},
+			End:   protocol.Position{Line: 4, Character: 29},
+		},
+	},
 	{
 		name: "read/write highlight on an volume array item object's source (cursor on read)",
 		content: `
@@ -2029,21 +3061,88 @@ services:
 		renameEdits: func(u protocol.DocumentUri) *protocol.WorkspaceEdit {
 			return nil
 		},
-		prepareRename: nil,
+		prepareRename: nil,
+	},
+	{
+		name: "read highlight on an invalid volume object",
+		content: `
+services:
+  test:
+    volumes:
+      test2:`,
+		line:      4,
+		character: 9,
+		locations: func(u protocol.DocumentUri) any { return nil },
+		links:     func(u protocol.DocumentUri) any { return nil },
+		ranges: []protocol.DocumentHighlight{
+			documentHighlight(4, 6, 4, 11, protocol.DocumentHighlightKindRead),
+		},
+		renameEdits: func(u protocol.DocumentUri) *protocol.WorkspaceEdit {
+			return &protocol.WorkspaceEdit{
+				Changes: map[protocol.DocumentUri][]protocol.TextEdit{
+					u: {
+						{
+							NewText: "newName",
+							Range: protocol.Range{
+								Start: protocol.Position{Line: 4, Character: 6},
+								End:   protocol.Position{Line: 4, Character: 11},
+							},
+						},
+					},
+				},
+			}
+		},
+		prepareRename: &protocol.Range{
+			Start: protocol.Position{Line: 4, Character: 6},
+			End:   protocol.Position{Line: 4, Character: 11},
+		},
+	},
+	{
+		name: "read highlight on an invalid volume object with the object itself anchored",
+		content: `
+services:
+  test:
+    volumes: &anchor
+      test2:`,
+		line:      4,
+		character: 9,
+		locations: func(u protocol.DocumentUri) any { return nil },
+		links:     func(u protocol.DocumentUri) any { return nil },
+		ranges: []protocol.DocumentHighlight{
+			documentHighlight(4, 6, 4, 11, protocol.DocumentHighlightKindRead),
+		},
+		renameEdits: func(u protocol.DocumentUri) *protocol.WorkspaceEdit {
+			return &protocol.WorkspaceEdit{
+				Changes: map[protocol.DocumentUri][]protocol.TextEdit{
+					u: {
+						{
+							NewText: "newName",
+							Range: protocol.Range{
+								Start: protocol.Position{Line: 4, Character: 6},
+								End:   protocol.Position{Line: 4, Character: 11},
+							},
+						},
+					},
+				},
+			}
+		},
+		prepareRename: &protocol.Range{
+			Start: protocol.Position{Line: 4, Character: 6},
+			End:   protocol.Position{Line: 4, Character: 11},
+		},
 	},
 	{
-		name: "read highlight on an invalid volume object",
+		name: "read highlight on an invalid volume object with the volume object itself anchored",
 		content: `
 services:
   test:
-    volumes:
-      test2:`,
-		line:      4,
-		character: 9,
+    volumes: { &anchor test2: null }`,
+		line:      3,
+		character: 25,
 		locations: func(u protocol.DocumentUri) any { return nil },
 		links:     func(u protocol.DocumentUri) any { return nil },
 		ranges: []protocol.DocumentHighlight{
-			documentHighlight(4, 6, 4, 11, protocol.DocumentHighlightKindRead),
+			documentHighlight(3, 23, 3, 28, protocol.DocumentHighlightKindRead),
 		},
 		renameEdits: func(u protocol.DocumentUri) *protocol.WorkspaceEdit {
 			return &protocol.WorkspaceEdit{
@@ -2052,8 +3151,8 @@ services:
 						{
 							NewText: "newName",
 							Range: protocol.Range{
-								Start: protocol.Position{Line: 4, Character: 6},
-								End:   protocol.Position{Line: 4, Character: 11},
+								Start: protocol.Position{Line: 3, Character: 23},
+								End:   protocol.Position{Line: 3, Character: 28},
 							},
 						},
 					},
@@ -2061,8 +3160,8 @@ services:
 			}
 		},
 		prepareRename: &protocol.Range{
-			Start: protocol.Position{Line: 4, Character: 6},
-			End:   protocol.Position{Line: 4, Character: 11},
+			Start: protocol.Position{Line: 3, Character: 23},
+			End:   protocol.Position{Line: 3, Character: 28},
 		},
 	},
 	{
@@ -2475,6 +3574,51 @@ var configReferenceTestCases = []struct {
 		name: "write highlight on a configs",
 		content: `
 configs:
+  test:`,
+		line:      2,
+		character: 4,
+		locations: func(u protocol.DocumentUri) any {
+			return types.CreateDefinitionResult(false, protocol.Range{
+				Start: protocol.Position{Line: 2, Character: 2},
+				End:   protocol.Position{Line: 2, Character: 6},
+			}, nil, u)
+		},
+		links: func(u protocol.DocumentUri) any {
+			return types.CreateDefinitionResult(true, protocol.Range{
+				Start: protocol.Position{Line: 2, Character: 2},
+				End:   protocol.Position{Line: 2, Character: 6},
+			}, &protocol.Range{
+				Start: protocol.Position{Line: 2, Character: 2},
+				End:   protocol.Position{Line: 2, Character: 6},
+			}, u)
+		},
+		ranges: []protocol.DocumentHighlight{
+			documentHighlight(2, 2, 2, 6, protocol.DocumentHighlightKindWrite),
+		},
+		renameEdits: func(u protocol.DocumentUri) *protocol.WorkspaceEdit {
+			return &protocol.WorkspaceEdit{
+				Changes: map[protocol.DocumentUri][]protocol.TextEdit{
+					u: {
+						{
+							NewText: "newName",
+							Range: protocol.Range{
+								Start: protocol.Position{Line: 2, Character: 2},
+								End:   protocol.Position{Line: 2, Character: 6},
+							},
+						},
+					},
+				},
+			}
+		},
+		prepareRename: &protocol.Range{
+			Start: protocol.Position{Line: 2, Character: 2},
+			End:   protocol.Position{Line: 2, Character: 6},
+		},
+	},
+	{
+		name: "write highlight on a configs with the configs object value anchored",
+		content: `
+configs: &anchor
   test:`,
 		line:      2,
 		character: 4,
@@ -2920,6 +4064,51 @@ var secretReferenceTestCases = []struct {
 		name: "write highlight on a secrets",
 		content: `
 secrets:
+  test:`,
+		line:      2,
+		character: 4,
+		locations: func(u protocol.DocumentUri) any {
+			return types.CreateDefinitionResult(false, protocol.Range{
+				Start: protocol.Position{Line: 2, Character: 2},
+				End:   protocol.Position{Line: 2, Character: 6},
+			}, nil, u)
+		},
+		links: func(u protocol.DocumentUri) any {
+			return types.CreateDefinitionResult(true, protocol.Range{
+				Start: protocol.Position{Line: 2, Character: 2},
+				End:   protocol.Position{Line: 2, Character: 6},
+			}, &protocol.Range{
+				Start: protocol.Position{Line: 2, Character: 2},
+				End:   protocol.Position{Line: 2, Character: 6},
+			}, u)
+		},
+		ranges: []protocol.DocumentHighlight{
+			documentHighlight(2, 2, 2, 6, protocol.DocumentHighlightKindWrite),
+		},
+		renameEdits: func(u protocol.DocumentUri) *protocol.WorkspaceEdit {
+			return &protocol.WorkspaceEdit{
+				Changes: map[protocol.DocumentUri][]protocol.TextEdit{
+					u: {
+						{
+							NewText: "newName",
+							Range: protocol.Range{
+								Start: protocol.Position{Line: 2, Character: 2},
+								End:   protocol.Position{Line: 2, Character: 6},
+							},
+						},
+					},
+				},
+			}
+		},
+		prepareRename: &protocol.Range{
+			Start: protocol.Position{Line: 2, Character: 2},
+			End:   protocol.Position{Line: 2, Character: 6},
+		},
+	},
+	{
+		name: "write highlight on a secrets with the secrets object value anchored",
+		content: `
+secrets: &anchor
   test:`,
 		line:      2,
 		character: 4,
@@ -4653,6 +5842,219 @@ services:
 			End:   protocol.Position{Line: 4, Character: 18},
 		},
 	},
+	{
+		name: "anchored sequence with an alias anchor in the sequence",
+		content: `
+services:
+  test:
+    networks:
+      - &anchor test
+  test2:
+    networks: &anchor2
+      - *anchor
+networks:
+  test:
+  test2:`,
+		line:      7,
+		character: 12,
+		locations: func(u protocol.DocumentUri) any {
+			return types.CreateDefinitionResult(false, protocol.Range{
+				Start: protocol.Position{Line: 4, Character: 9},
+				End:   protocol.Position{Line: 4, Character: 15},
+			}, nil, u)
+		},
+		links: func(u protocol.DocumentUri) any {
+			return types.CreateDefinitionResult(true, protocol.Range{
+				Start: protocol.Position{Line: 4, Character: 9},
+				End:   protocol.Position{Line: 4, Character: 15},
+			}, &protocol.Range{
+				Start: protocol.Position{Line: 7, Character: 9},
+				End:   protocol.Position{Line: 7, Character: 15},
+			}, u)
+		},
+		ranges: []protocol.DocumentHighlight{
+			documentHighlight(4, 9, 4, 15, protocol.DocumentHighlightKindWrite),
+			documentHighlight(7, 9, 7, 15, protocol.DocumentHighlightKindRead),
+		},
+		renameEdits: func(u protocol.DocumentUri) *protocol.WorkspaceEdit {
+			return &protocol.WorkspaceEdit{
+				Changes: map[protocol.DocumentUri][]protocol.TextEdit{
+					u: {
+						{
+							NewText: "newName",
+							Range: protocol.Range{
+								Start: protocol.Position{Line: 4, Character: 9},
+								End:   protocol.Position{Line: 4, Character: 15},
+							},
+						},
+						{
+							NewText: "newName",
+							Range: protocol.Range{
+								Start: protocol.Position{Line: 7, Character: 9},
+								End:   protocol.Position{Line: 7, Character: 15},
+							},
+						},
+					},
+				},
+			}
+		},
+		prepareRename: &protocol.Range{
+			Start: protocol.Position{Line: 7, Character: 9},
+			End:   protocol.Position{Line: 7, Character: 15},
+		},
+	},
+	{
+		name: "write reference on a nested anchor with main anchor on a sequence",
+		content: `
+services:
+  test:
+    image: alpine:3.21
+    volumes: &anchor
+      - source: &anchor2 vol
+        target: /target
+        type: volume
+volumes:
+  vol:`,
+		line:      5,
+		character: 20,
+		locations: func(u protocol.DocumentUri) any {
+			return types.CreateDefinitionResult(false, protocol.Range{
+				Start: protocol.Position{Line: 5, Character: 17},
+				End:   protocol.Position{Line: 5, Character: 24},
+			}, nil, u)
+		},
+		links: func(u protocol.DocumentUri) any {
+			return types.CreateDefinitionResult(true, protocol.Range{
+				Start: protocol.Position{Line: 5, Character: 17},
+				End:   protocol.Position{Line: 5, Character: 24},
+			}, &protocol.Range{
+				Start: protocol.Position{Line: 5, Character: 17},
+				End:   protocol.Position{Line: 5, Character: 24},
+			}, u)
+		},
+		ranges: []protocol.DocumentHighlight{
+			documentHighlight(5, 17, 5, 24, protocol.DocumentHighlightKindWrite),
+		},
+		renameEdits: func(u protocol.DocumentUri) *protocol.WorkspaceEdit {
+			return &protocol.WorkspaceEdit{
+				Changes: map[protocol.DocumentUri][]protocol.TextEdit{
+					u: {
+						{
+							NewText: "newName",
+							Range: protocol.Range{
+								Start: protocol.Position{Line: 5, Character: 17},
+								End:   protocol.Position{Line: 5, Character: 24},
+							},
+						},
+					},
+				},
+			}
+		},
+		prepareRename: &protocol.Range{
+			Start: protocol.Position{Line: 5, Character: 17},
+			End:   protocol.Position{Line: 5, Character: 24},
+		},
+	},
+	{
+		name: "write reference on a nested anchor in a sequence with main anchor",
+		content: `
+services:
+  test:
+    image: alpine:3.21
+    volumes: &anchor
+      - &anchor2 vol
+volumes:
+  vol:`,
+		line:      5,
+		character: 14,
+		locations: func(u protocol.DocumentUri) any {
+			return types.CreateDefinitionResult(false, protocol.Range{
+				Start: protocol.Position{Line: 5, Character: 9},
+				End:   protocol.Position{Line: 5, Character: 16},
+			}, nil, u)
+		},
+		links: func(u protocol.DocumentUri) any {
+			return types.CreateDefinitionResult(true, protocol.Range{
+				Start: protocol.Position{Line: 5, Character: 9},
+				End:   protocol.Position{Line: 5, Character: 16},
+			}, &protocol.Range{
+				Start: protocol.Position{Line: 5, Character: 9},
+				End:   protocol.Position{Line: 5, Character: 16},
+			}, u)
+		},
+		ranges: []protocol.DocumentHighlight{
+			documentHighlight(5, 9, 5, 16, protocol.DocumentHighlightKindWrite),
+		},
+		renameEdits: func(u protocol.DocumentUri) *protocol.WorkspaceEdit {
+			return &protocol.WorkspaceEdit{
+				Changes: map[protocol.DocumentUri][]protocol.TextEdit{
+					u: {
+						{
+							NewText: "newName",
+							Range: protocol.Range{
+								Start: protocol.Position{Line: 5, Character: 9},
+								End:   protocol.Position{Line: 5, Character: 16},
+							},
+						},
+					},
+				},
+			}
+		},
+		prepareRename: &protocol.Range{
+			Start: protocol.Position{Line: 5, Character: 9},
+			End:   protocol.Position{Line: 5, Character: 16},
+		},
+	},
+	{
+		name: "write reference on a nested anchor with main anchor on an object",
+		content: `
+services:
+  test:
+    image: alpine:3.21
+    volumes:
+      - &anchor { source: &anchor2 vol, target: /target, type: volume }
+volumes:
+  vol:`,
+		line:      5,
+		character: 30,
+		locations: func(u protocol.DocumentUri) any {
+			return types.CreateDefinitionResult(false, protocol.Range{
+				Start: protocol.Position{Line: 5, Character: 27},
+				End:   protocol.Position{Line: 5, Character: 34},
+			}, nil, u)
+		},
+		links: func(u protocol.DocumentUri) any {
+			return types.CreateDefinitionResult(true, protocol.Range{
+				Start: protocol.Position{Line: 5, Character: 27},
+				End:   protocol.Position{Line: 5, Character: 34},
+			}, &protocol.Range{
+				Start: protocol.Position{Line: 5, Character: 27},
+				End:   protocol.Position{Line: 5, Character: 34},
+			}, u)
+		},
+		ranges: []protocol.DocumentHighlight{
+			documentHighlight(5, 27, 5, 34, protocol.DocumentHighlightKindWrite),
+		},
+		renameEdits: func(u protocol.DocumentUri) *protocol.WorkspaceEdit {
+			return &protocol.WorkspaceEdit{
+				Changes: map[protocol.DocumentUri][]protocol.TextEdit{
+					u: {
+						{
+							NewText: "newName",
+							Range: protocol.Range{
+								Start: protocol.Position{Line: 5, Character: 27},
+								End:   protocol.Position{Line: 5, Character: 34},
+							},
+						},
+					},
+				},
+			}
+		},
+		prepareRename: &protocol.Range{
+			Start: protocol.Position{Line: 5, Character: 27},
+			End:   protocol.Position{Line: 5, Character: 34},
+		},
+	},
 }
 
 func TestDocumentHighlight_Fragments(t *testing.T) {
diff --git a/internal/compose/hover.go b/internal/compose/hover.go
index 41f0b0e..3c6996a 100644
--- a/internal/compose/hover.go
+++ b/internal/compose/hover.go
@@ -379,16 +379,10 @@ func hover(schema *jsonschema.Schema, nodes []ast.Node, line, column, lineLength
 }
 
 func constructNodePath(matches []ast.Node, node ast.Node, line, col int) []ast.Node {
-	if anchor, ok := node.(*ast.AnchorNode); ok {
-		node = anchor.Value
-	}
+	node = resolveAnchor(node)
 	switch n := node.(type) {
 	case *ast.MappingValueNode:
-		var nodeKey ast.Node
-		nodeKey = n.Key
-		if anchor, ok := nodeKey.(*ast.AnchorNode); ok {
-			nodeKey = anchor.Value
-		}
+		nodeKey := resolveAnchor(n.Key)
 		if m := constructNodePath(matches, nodeKey, line, col); m != nil {
 			matches = append(matches, m...)
 			return matches
@@ -420,3 +414,10 @@ func constructNodePath(matches []ast.Node, node ast.Node, line, col int) []ast.N
 	}
 	return nil
 }
+
+func resolveAnchor(node ast.Node) ast.Node {
+	if anchor, ok := node.(*ast.AnchorNode); ok {
+		return anchor.Value
+	}
+	return node
+}