diff --git a/src/sagemaker/local/image.py b/src/sagemaker/local/image.py
index 07b4c015db..51b20a3bd8 100644
--- a/src/sagemaker/local/image.py
+++ b/src/sagemaker/local/image.py
@@ -14,6 +14,7 @@
 from __future__ import absolute_import
 
 import base64
+import copy
 import errno
 import json
 import logging
@@ -670,7 +671,13 @@ def _generate_compose_file(self, command, additional_volumes=None, additional_en
             raise e
 
         yaml_content = yaml.dump(content, default_flow_style=False)
-        logger.info("docker compose file: \n%s", yaml_content)
+        # Mask all environment vars for logging, could contain secrects.
+        masked_content = copy.deepcopy(content)
+        for _, service_data in masked_content["services"].items():
+            service_data["environment"] = ["[Masked]" for _ in service_data["environment"]]
+
+        masked_content_for_logging = yaml.dump(masked_content, default_flow_style=False)
+        logger.info("docker compose file: \n%s", masked_content_for_logging)
         with open(docker_compose_path, "w") as f:
             f.write(yaml_content)
 
diff --git a/tests/unit/test_image.py b/tests/unit/test_image.py
index 4d1a65309f..4568d0742c 100644
--- a/tests/unit/test_image.py
+++ b/tests/unit/test_image.py
@@ -19,6 +19,7 @@
 from botocore.credentials import Credentials
 
 import base64
+import logging
 import json
 import os
 import subprocess
@@ -332,12 +333,14 @@ def test_check_output():
 @patch("sagemaker.local.data.get_data_source_instance")
 @patch("subprocess.Popen")
 def test_train(
-    popen, get_data_source_instance, retrieve_artifacts, cleanup, tmpdir, sagemaker_session
+    popen, get_data_source_instance, retrieve_artifacts, cleanup, tmpdir, sagemaker_session, caplog
 ):
     data_source = Mock()
     data_source.get_root_dir.return_value = "foo"
     get_data_source_instance.return_value = data_source
 
+    caplog.set_level(logging.INFO)
+
     directories = [str(tmpdir.mkdir("container-root")), str(tmpdir.mkdir("data"))]
     with patch(
         "sagemaker.local.image._SageMakerContainer._create_tmp_folder", side_effect=directories
@@ -388,6 +391,7 @@ def test_train(
 
     retrieve_artifacts.assert_called_once()
     cleanup.assert_called_once()
+    assert "[Masked]" in caplog.text
 
 
 @patch("sagemaker.local.local_session.LocalSession", Mock())
@@ -579,7 +583,8 @@ def test_container_does_not_enable_nvidia_docker_for_cpu_containers(sagemaker_se
 @patch("sagemaker.local.image._SageMakerContainer._prepare_serving_volumes", Mock(return_value=[]))
 @patch("shutil.copy", Mock())
 @patch("shutil.copytree", Mock())
-def test_serve(tmpdir, sagemaker_session):
+def test_serve(tmpdir, sagemaker_session, caplog):
+    caplog.set_level(logging.INFO)
     with patch(
         "sagemaker.local.image._SageMakerContainer._create_tmp_folder",
         return_value=str(tmpdir.mkdir("container-root")),
@@ -601,6 +606,7 @@ def test_serve(tmpdir, sagemaker_session):
             for h in sagemaker_container.hosts:
                 assert config["services"][h]["image"] == image
                 assert config["services"][h]["command"] == "serve"
+    assert "[Masked]" in caplog.text
 
 
 @patch("sagemaker.local.image._HostingContainer.run", Mock())