diff --git a/loader/loader.go b/loader/loader.go
index 24911eb75..167fb6903 100644
--- a/loader/loader.go
+++ b/loader/loader.go
@@ -497,7 +497,11 @@ func loadYamlFile(ctx context.Context,
 
 		}
 
-		dict, err = override.Merge(dict, cfg)
+		var mergePaths []tree.Path
+		if rp, ok := processor.(*ResetProcessor); ok {
+			mergePaths = rp.MergePaths()
+		}
+		dict, err = override.MergeWithPositionalPaths(dict, cfg, mergePaths)
 		if err != nil {
 			return err
 		}
diff --git a/loader/merge_positional_test.go b/loader/merge_positional_test.go
new file mode 100644
index 000000000..6a28c5757
--- /dev/null
+++ b/loader/merge_positional_test.go
@@ -0,0 +1,113 @@
+/*
+   Copyright 2020 The Compose Specification Authors.
+
+   Licensed under the Apache License, Version 2.0 (the "License");
+   you may not use this file except in compliance with the License.
+   You may obtain a copy of the License at
+
+       http://www.apache.org/licenses/LICENSE-2.0
+
+   Unless required by applicable law or agreed to in writing, software
+   distributed under the License is distributed on an "AS IS" BASIS,
+   WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+   See the License for the specific language governing permissions and
+   limitations under the License.
+*/
+
+package loader
+
+import (
+	"context"
+	"testing"
+
+	"github.com/compose-spec/compose-go/v2/types"
+	"gotest.tools/v3/assert"
+)
+
+func loadMerge(t *testing.T, base, override string) (*types.Project, error) {
+	t.Helper()
+	return LoadWithContext(context.Background(), types.ConfigDetails{
+		ConfigFiles: []types.ConfigFile{
+			{Filename: "compose.yaml", Content: []byte(base)},
+			{Filename: "compose.override.yaml", Content: []byte(override)},
+		},
+	}, func(o *Options) { o.SkipNormalization = true })
+}
+
+// The `!merge` tag turns the default sequence handling into a positional merge:
+// an override sequence is aligned with the base by index, and a `- {}` element
+// is a no-op that leaves the corresponding base element untouched. Here a single
+// argument of `command` is changed — note that `command` normally *replaces* the
+// whole sequence, so this also shows `!merge` taking precedence over that rule.
+func TestMerge_CommandSingleArg(t *testing.T) {
+	base := `
+name: merge-example
+services:
+  app:
+    image: alpine
+    command:
+      - server
+      - --port
+      - "8080"
+      - --verbose
+`
+	override := `
+services:
+  app:
+    command: !merge
+      - {}
+      - {}
+      - "9090"
+`
+	p, err := loadMerge(t, base, override)
+	assert.NilError(t, err)
+	assert.DeepEqual(t, []string(p.Services["app"].Command), []string{"server", "--port", "9090", "--verbose"})
+}
+
+// `dns` normally *appends*. With `!merge` the override replaces the first entry
+// positionally and keeps the second (`- {}`), instead of appending.
+func TestMerge_DnsPositional(t *testing.T) {
+	base := `
+name: merge-example
+services:
+  app:
+    image: alpine
+    dns:
+      - 1.1.1.1
+      - 8.8.8.8
+`
+	override := `
+services:
+  app:
+    dns: !merge
+      - 9.9.9.9
+      - {}
+`
+	p, err := loadMerge(t, base, override)
+	assert.NilError(t, err)
+	assert.DeepEqual(t, []string(p.Services["app"].DNS), []string{"9.9.9.9", "8.8.8.8"})
+}
+
+// The tag is ignored on anything that is not a sequence, so it is a harmless
+// no-op there and the mapping merges as usual.
+func TestMerge_IgnoredOnMapping(t *testing.T) {
+	base := `
+name: merge-example
+services:
+  app:
+    image: alpine
+    environment:
+      FOO: bar
+`
+	override := `
+services:
+  app:
+    environment: !merge
+      BAZ: qux
+`
+	p, err := loadMerge(t, base, override)
+	assert.NilError(t, err)
+	env := p.Services["app"].Environment
+	assert.Equal(t, *env["FOO"], "bar")
+	assert.Equal(t, *env["BAZ"], "qux")
+}
diff --git a/loader/reset.go b/loader/reset.go
index 78836b5ca..3ff4473a6 100644
--- a/loader/reset.go
+++ b/loader/reset.go
@@ -40,6 +40,7 @@ type nodeCache struct {
 type ResetProcessor struct {
 	target        any
 	paths         []tree.Path
+	mergePaths    []tree.Path
 	visitedNodes  map[*yaml.Node][]tree.Path
 	resolvedNodes map[*yaml.Node]nodeCache
 	visitCount    int
@@ -47,6 +48,13 @@ type ResetProcessor struct {
 	maxNodeVisits int
 }
 
+// MergePaths returns the paths of the sequences tagged with `!merge` in the
+// processed document. The loader passes them to override.MergeWithPositionalPaths
+// so those sequences are merged element by element instead of appended.
+func (p *ResetProcessor) MergePaths() []tree.Path {
+	return p.mergePaths
+}
+
 // UnmarshalYAML implement yaml.Unmarshaler
 func (p *ResetProcessor) UnmarshalYAML(value *yaml.Node) error {
 	p.visitedNodes = make(map[*yaml.Node][]tree.Path)
@@ -88,6 +96,17 @@ func (p *ResetProcessor) resolveReset(node *yaml.Node, path tree.Path) (*yaml.No
 		p.paths = append(p.paths, path)
 		return node, nil
 	}
+	// `!merge` requests a positional (element by element) merge of a sequence.
+	// Record the path so the merge step handles it, strip the tag so the node
+	// decodes as a plain sequence, then keep processing its children. The tag is
+	// ignored on anything that is not a sequence.
+	if node.Tag == "!merge" {
+		node.Tag = ""
+		if node.Kind == yaml.SequenceNode {
+			p.mergePaths = append(p.mergePaths, path)
+			return p.resolveContainer(node, path)
+		}
+	}
 
 	// If the node is an alias, process the alias target via the cache so each anchor is
 	// processed at most once.
diff --git a/override/merge.go b/override/merge.go
index 525299cd2..3da2a3184 100644
--- a/override/merge.go
+++ b/override/merge.go
@@ -20,13 +20,22 @@ import (
 	"cmp"
 	"fmt"
 	"slices"
+	"strconv"
 
 	"github.com/compose-spec/compose-go/v2/tree"
 )
 
 // Merge applies overrides to a config model
 func Merge(right, left map[string]any) (map[string]any, error) {
-	merged, err := MergeYaml(right, left, tree.NewPath())
+	return MergeWithPositionalPaths(right, left, nil)
+}
+
+// MergeWithPositionalPaths is like Merge but performs a positional (element by
+// element) merge for the sequences located at the given paths, instead of the
+// default append. These paths are collected by the loader from sequences tagged
+// with `!merge` in an override file. See mergePositional for the semantics.
+func MergeWithPositionalPaths(right, left map[string]any, positional []tree.Path) (map[string]any, error) {
+	merged, err := mergeYaml(right, left, tree.NewPath(), positional)
 	if err != nil {
 		return nil, err
 	}
@@ -72,6 +81,19 @@ func init() {
 
 // MergeYaml merges map[string]any yaml trees handling special rules
 func MergeYaml(e any, o any, p tree.Path) (any, error) {
+	return mergeYaml(e, o, p, nil)
+}
+
+// mergeYaml is MergeYaml with the set of positional-merge paths threaded through
+// the recursion. A sequence whose path matches one of them is merged element by
+// element (see mergePositional) — this takes precedence over both the default
+// append and the mergeSpecials rules, since it is an explicit user request.
+func mergeYaml(e any, o any, p tree.Path, positional []tree.Path) (any, error) {
+	for _, mp := range positional {
+		if p.Matches(mp) {
+			return mergePositional(e, o, p, positional)
+		}
+	}
 	for pattern, merger := range mergeSpecials {
 		if p.Matches(pattern) {
 			merged, err := merger(e, o, p)
@@ -90,7 +112,7 @@ func MergeYaml(e any, o any, p tree.Path) (any, error) {
 		if !ok {
 			return nil, fmt.Errorf("cannot override %s", p)
 		}
-		return mergeMappings(value, other, p)
+		return mergeMappings(value, other, p, positional)
 	case []any:
 		other, ok := o.([]any)
 		if !ok {
@@ -102,7 +124,60 @@ func MergeYaml(e any, o any, p tree.Path) (any, error) {
 	}
 }
 
-func mergeMappings(mapping map[string]any, other map[string]any, p tree.Path) (map[string]any, error) {
+// mergePositional merges two sequences element by element, by index, instead of
+// appending. It backs the `!merge` tag: an override can align its sequence with
+// the base and touch a single element while leaving the others untouched with a
+// no-op entry (`- {}` or `- null`). Semantics per index i:
+//
+//   - override shorter than base at i: keep base[i]
+//   - base shorter than override at i: take override[i] (the sequence is extended)
+//   - override[i] is a no-op (nil / empty map / empty seq): keep base[i]
+//   - otherwise: recursively merge base[i] with override[i] (deep-merge for
+//     mappings, replace for scalars)
+func mergePositional(e any, o any, p tree.Path, positional []tree.Path) (any, error) {
+	base, ok1 := e.([]any)
+	over, ok2 := o.([]any)
+	if !ok1 || !ok2 {
+		// The loader only records the tag for sequences, so this is defensive:
+		// fall back to a plain override rather than failing.
+		return o, nil
+	}
+	n := max(len(base), len(over))
+	out := make([]any, 0, n)
+	for i := range n {
+		switch {
+		case i >= len(over):
+			out = append(out, base[i])
+		case i >= len(base):
+			out = append(out, over[i])
+		case isNoOp(over[i]):
+			out = append(out, base[i])
+		default:
+			merged, err := mergeYaml(base[i], over[i], p.Next(strconv.Itoa(i)), positional)
+			if err != nil {
+				return nil, err
+			}
+			out = append(out, merged)
+		}
+	}
+	return out, nil
+}
+
+// isNoOp reports whether a positional override element must leave the base
+// element untouched: an explicit null or an empty container (`- {}`).
+func isNoOp(x any) bool {
+	switch v := x.(type) {
+	case nil:
+		return true
+	case map[string]any:
+		return len(v) == 0
+	case []any:
+		return len(v) == 0
+	}
+	return false
+}
+
+func mergeMappings(mapping map[string]any, other map[string]any, p tree.Path, positional []tree.Path) (map[string]any, error) {
 	for k, v := range other {
 		e, ok := mapping[k]
 		if !ok {
@@ -110,7 +185,7 @@ func mergeMappings(mapping map[string]any, other map[string]any, p tree.Path) (m
 			continue
 		}
 		next := p.Next(k)
-		merged, err := MergeYaml(e, v, next)
+		merged, err := mergeYaml(e, v, next, positional)
 		if err != nil {
 			return nil, err
 		}
@@ -127,7 +202,7 @@ func mergeLogging(c any, o any, p tree.Path) (any, error) {
 	d, ok1 := other["driver"]
 	o, ok2 := config["driver"]
 	if d == o || !ok1 || !ok2 {
-		return mergeMappings(config, other, p)
+		return mergeMappings(config, other, p, nil)
 	}
 	return other, nil
 }
@@ -144,7 +219,7 @@ func mergeBuild(c any, o any, path tree.Path) (any, error) {
 		}
 		return nil
 	}
-	return mergeMappings(toBuild(c), toBuild(o), path)
+	return mergeMappings(toBuild(c), toBuild(o), path, nil)
 }
 
 func mergeDependsOn(c any, o any, path tree.Path) (any, error) {
@@ -156,19 +231,19 @@ func mergeDependsOn(c any, o any, path tree.Path) (any, error) {
 		"condition": "service_started",
 		"required":  true,
 	})
-	return mergeMappings(right, left, path)
+	return mergeMappings(right, left, path, nil)
 }
 
 func mergeModels(c any, o any, path tree.Path) (any, error) {
 	right := convertIntoMapping(c, nil)
 	left := convertIntoMapping(o, nil)
-	return mergeMappings(right, left, path)
+	return mergeMappings(right, left, path, nil)
 }
 
 func mergeNetworks(c any, o any, path tree.Path) (any, error) {
 	right := convertIntoMapping(c, nil)
 	left := convertIntoMapping(o, nil)
-	return mergeMappings(right, left, path)
+	return mergeMappings(right, left, path, nil)
 }
 
 func mergeExtraHosts(c any, o any, _ tree.Path) (any, error) {
@@ -227,7 +302,7 @@ func convertIntoSequence(value any) []any {
 func mergeUlimit(_ any, o any, p tree.Path) (any, error) {
 	over, ismapping := o.(map[string]any)
 	if base, ok := o.(map[string]any); ok && ismapping {
-		return mergeMappings(base, over, p)
+		return mergeMappings(base, over, p, nil)
 	}
 	return o, nil
 }
@@ -255,7 +330,7 @@ func mergeIPAMConfig(c any, o any, path tree.Path) (any, error) {
 					continue
 				}
 			}
-			merged, err := mergeMappings(right, left, path)
+			merged, err := mergeMappings(right, left, path, nil)
 			if err != nil {
 				return nil, err
 			}
diff --git a/override/merge_positional_test.go b/override/merge_positional_test.go
new file mode 100644
index 000000000..4d6343870
--- /dev/null
+++ b/override/merge_positional_test.go
@@ -0,0 +1,140 @@
+/*
+   Copyright 2020 The Compose Specification Authors.
+
+   Licensed under the Apache License, Version 2.0 (the "License");
+   you may not use this file except in compliance with the License.
+   You may obtain a copy of the License at
+
+       http://www.apache.org/licenses/LICENSE-2.0
+
+   Unless required by applicable law or agreed to in writing, software
+   distributed under the License is distributed on an "AS IS" BASIS,
+   WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+   See the License for the specific language governing permissions and
+   limitations under the License.
+*/
+
+package override
+
+import (
+	"testing"
+
+	"github.com/compose-spec/compose-go/v2/tree"
+	"gotest.tools/v3/assert"
+)
+
+// mergePositional performs an element-by-element (positional) merge for the
+// sequences at the given paths instead of the default append. In a compose file
+// this is requested with the `!merge` tag on the override sequence; the tests
+// below drive the merge directly with explicit paths to illustrate the
+// semantics.
+func assertPositionalMerge(t *testing.T, right, left, want string, paths ...string) {
+	t.Helper()
+	pp := make([]tree.Path, len(paths))
+	for i, p := range paths {
+		pp[i] = tree.NewPath(p)
+	}
+	got, err := MergeWithPositionalPaths(unmarshal(t, right), unmarshal(t, left), pp)
+	assert.NilError(t, err)
+	assert.DeepEqual(t, got, unmarshal(t, want))
+}
+
+// A no-op element (`- {}`) keeps the base value at that index; a non-null element
+// replaces it. Here only the third argument (the port value) is changed.
+func TestMergePositional_TargetsSingleScalar(t *testing.T) {
+	base := `
+command:
+  - server
+  - --port
+  - "8080"
+  - --verbose
+`
+	override := `
+command:
+  - {}
+  - {}
+  - "9090"
+`
+	want := `
+command:
+  - server
+  - --port
+  - "9090"
+  - --verbose
+`
+	assertPositionalMerge(t, base, override, want, "command")
+}
+
+// A non-null map element is deep-merged with the base element at the same index,
+// so a single field can be changed while the rest of that element is preserved.
+func TestMergePositional_DeepMergesMapElement(t *testing.T) {
+	base := `
+ports:
+  - target: 80
+    published: "8080"
+    protocol: tcp
+  - target: 443
+    published: "8443"
+`
+	override := `
+ports:
+  - published: "9090"
+  - {}
+`
+	want := `
+ports:
+  - target: 80
+    published: "9090"
+    protocol: tcp
+  - target: 443
+    published: "8443"
+`
+	assertPositionalMerge(t, base, override, want, "ports")
+}
+
+// An explicit null element is a no-op too.
+func TestMergePositional_NullElementIsNoOp(t *testing.T) {
+	base := `
+dns:
+  - 1.1.1.1
+  - 8.8.8.8
+`
+	override := `
+dns:
+  - 9.9.9.9
+  - ~
+`
+	want := `
+dns:
+  - 9.9.9.9
+  - 8.8.8.8
+`
+	assertPositionalMerge(t, base, override, want, "dns")
+}
+
+// When the override is longer than the base the sequence is extended; when it is
+// shorter the base tail is preserved.
+func TestMergePositional_LengthMismatch(t *testing.T) {
+	t.Run("override extends base", func(t *testing.T) {
+		base := "seq: [a, b]"
+		override := "seq: [{}, B, c]"
+		want := "seq: [a, B, c]"
+		assertPositionalMerge(t, base, override, want, "seq")
+	})
+	t.Run("base longer than override", func(t *testing.T) {
+		base := "seq: [a, b, c]"
+		override := "seq: [A]"
+		want := "seq: [A, b, c]"
+		assertPositionalMerge(t, base, override, want, "seq")
+	})
+}
+
+// Without a positional path the default append behavior is unchanged — this is
+// the contrast that makes `!merge` opt-in and non-breaking.
+func TestMergePositional_NotEnabledStillAppends(t *testing.T) {
+	base := "seq: [a, b]"
+	override := "seq: [c, d]"
+	got, err := MergeWithPositionalPaths(unmarshal(t, base), unmarshal(t, override), nil)
+	assert.NilError(t, err)
+	assert.DeepEqual(t, got, unmarshal(t, "seq: [a, b, c, d]"))
+}