diff --git a/tests/compose_down.go b/tests/compose_down.go
index 5e1e720..d1a92df 100644
--- a/tests/compose_down.go
+++ b/tests/compose_down.go
@@ -5,12 +5,14 @@ package tests
 
 import (
 	"fmt"
+	"os"
+	"regexp"
+
 	"github.com/onsi/ginkgo/v2"
 	"github.com/onsi/gomega"
 	"github.com/runfinch/common-tests/command"
 	"github.com/runfinch/common-tests/ffs"
 	"github.com/runfinch/common-tests/option"
-	"os"
 )
 
 // ComposeDown tests functionality of `compose down` command.
@@ -37,9 +39,33 @@ func ComposeDown(o *option.Option) {
 			containerShouldNotExist(o, containerNames...)
 			volumeShouldExist(o, "compose_data_volume")
 		})
+
+		for _, volumes := range []string{"-v", "--volumes"} {
+			volumes := volumes
+			ginkgo.It(fmt.Sprintf("should stop compose services and delete volumes by specifying %s flag", volumes), func() {
+				volumes := volumes
+				output := command.StdoutStr(o, "compose", "down", volumes, "--file", composeFilePath)
+				containerShouldNotExist(o, containerNames...)
+				if !isVolumeInUse(output) {
+					volumeShouldNotExist(o, "compose_data_volume")
+				}
+			})
+		}
 	})
 }
 
+// sometimes nerdctl fails to delete the volume due to concurrent usage of the volume by the container.
+// For more details - https://github.com/runfinch/finch/issues/261
+func isVolumeInUse(output string) bool {
+	if len(output) < 1 {
+		return false
+	}
+	// Error msg is generated from nerdctl volume rm cmd.
+	// see: https://github.com/containerd/nerdctl/blob/main/pkg/cmd/volume/rm.go#L52
+	re := regexp.MustCompile(`volume.*in use`)
+	return re.MatchString(output)
+}
+
 func createComposeYmlForDownCmd(serviceNames []string, containerNames []string) (string, string) {
 	gomega.Expect(serviceNames).Should(gomega.HaveLen(2))
 	gomega.Expect(containerNames).Should(gomega.HaveLen(2))