diff --git a/changelogs/fragments/992-module-docker_compose_v2_run-fix-env-argument.yml b/changelogs/fragments/992-module-docker_compose_v2_run-fix-env-argument.yml
new file mode 100644
index 000000000..c02d39607
--- /dev/null
+++ b/changelogs/fragments/992-module-docker_compose_v2_run-fix-env-argument.yml
@@ -0,0 +1,2 @@
+bugfixes:
+- "docker_compose_v2_exec, docker_compose_v2_run - fix missing ``--env`` flag while assembling env arguments (https://github.com/ansible-collections/community.docker/pull/992)."
\ No newline at end of file
diff --git a/plugins/modules/docker_compose_v2_exec.py b/plugins/modules/docker_compose_v2_exec.py
index 5590f77e1..bd3391d16 100644
--- a/plugins/modules/docker_compose_v2_exec.py
+++ b/plugins/modules/docker_compose_v2_exec.py
@@ -229,6 +229,7 @@ def get_exec_cmd(self, dry_run, no_start=False):
             args.append('--no-TTY')
         if self.env:
             for name, value in list(self.env.items()):
+                args.append('--env')
                 args.append('{0}={1}'.format(name, value))
         args.append('--')
         args.append(self.service)
diff --git a/plugins/modules/docker_compose_v2_run.py b/plugins/modules/docker_compose_v2_run.py
index c27a85c8b..6c8df8ed3 100644
--- a/plugins/modules/docker_compose_v2_run.py
+++ b/plugins/modules/docker_compose_v2_run.py
@@ -346,6 +346,7 @@ def get_run_cmd(self, dry_run, no_start=False):
             args.append('--no-TTY')
         if self.env:
             for name, value in list(self.env.items()):
+                args.append('--env')
                 args.append('{0}={1}'.format(name, value))
         args.append('--')
         args.append(self.service)