diff --git a/src/main/groovy/com/avast/gradle/dockercompose/tasks/ComposeUp.groovy b/src/main/groovy/com/avast/gradle/dockercompose/tasks/ComposeUp.groovy
index 1e783bb..f843ad3 100644
--- a/src/main/groovy/com/avast/gradle/dockercompose/tasks/ComposeUp.groovy
+++ b/src/main/groovy/com/avast/gradle/dockercompose/tasks/ComposeUp.groovy
@@ -111,7 +111,10 @@ class ComposeUp extends DefaultTask {
             String gateway
             Map<String, Object> networkSettings = inspection.NetworkSettings
             Map<String, Object> networks = networkSettings.Networks
-            if (networks) {
+            if (networks && networks.every { it.key.toLowerCase().equals("host") }) {
+                gateway = 'localhost'
+                logger.debug("Will use $gateway as host of $serviceName because it is using HOST network")
+            } else if (networks) {
                 Map.Entry<String, Object> firstNetworkPair = networks.find()
                 gateway = firstNetworkPair.value.Gateway
                 logger.debug("Will use $gateway (network ${firstNetworkPair.key}) as host of $serviceName")
diff --git a/src/test/groovy/com/avast/gradle/dockercompose/DockerComposePluginTest.groovy b/src/test/groovy/com/avast/gradle/dockercompose/DockerComposePluginTest.groovy
index e085903..a1400c9 100644
--- a/src/test/groovy/com/avast/gradle/dockercompose/DockerComposePluginTest.groovy
+++ b/src/test/groovy/com/avast/gradle/dockercompose/DockerComposePluginTest.groovy
@@ -223,6 +223,37 @@ class DockerComposePluginTest extends Specification {
         ''']
     }
 
+    def "expose localhost as a host for container with HOST networking"() {
+        def projectDir = new TmpDirTemporaryFileProvider().createTemporaryDirectory("gradle", "projectDir")
+        new File(projectDir, 'docker-compose.yml') << '''
+            version: '2'
+            services:
+                web:
+                    image: nginx
+                    network_mode: host
+                    ports:
+                      - 80
+        '''
+        def project = ProjectBuilder.builder().withProjectDir(projectDir).build()
+        project.plugins.apply 'java'
+        project.plugins.apply 'docker-compose'
+        project.tasks.composeUp.up()
+        Test test = project.tasks.test as Test
+        when:
+        project.dockerCompose.exposeAsEnvironment(test)
+        project.dockerCompose.exposeAsSystemProperties(test)
+        then:
+        test.environment.get('WEB_HOST') == 'localhost'
+        test.systemProperties.get('web.host') == 'localhost'
+        cleanup:
+        project.tasks.composeDown.down()
+        try {
+            projectDir.delete()
+        } catch(ignored) {
+            projectDir.deleteOnExit()
+        }
+    }
+
     def "reads logs of service"() {
         def projectDir = new TmpDirTemporaryFileProvider().createTemporaryDirectory("gradle", "projectDir")
         new File(projectDir, 'docker-compose.yml') << '''