diff --git a/spring-boot-project/spring-boot-docker-compose/src/main/java/org/springframework/boot/docker/compose/service/connection/clickhouse/ClickHouseEnvironment.java b/spring-boot-project/spring-boot-docker-compose/src/main/java/org/springframework/boot/docker/compose/service/connection/clickhouse/ClickHouseEnvironment.java
index 3414ce66629..1a8ea70ab0d 100644
--- a/spring-boot-project/spring-boot-docker-compose/src/main/java/org/springframework/boot/docker/compose/service/connection/clickhouse/ClickHouseEnvironment.java
+++ b/spring-boot-project/spring-boot-docker-compose/src/main/java/org/springframework/boot/docker/compose/service/connection/clickhouse/ClickHouseEnvironment.java
@@ -1,5 +1,5 @@
 /*
- * Copyright 2012-2024 the original author or authors.
+ * Copyright 2012-2025 the original author or authors.
  *
  * Licensed under the Apache License, Version 2.0 (the "License");
  * you may not use this file except in compliance with the License.
@@ -41,7 +41,7 @@ class ClickHouseEnvironment {
 	}
 
 	private String extractPassword(Map<String, String> env) {
-		boolean allowEmpty = Boolean.parseBoolean(env.getOrDefault("ALLOW_EMPTY_PASSWORD", Boolean.FALSE.toString()));
+		boolean allowEmpty = env.containsKey("ALLOW_EMPTY_PASSWORD");
 		String password = env.get("CLICKHOUSE_PASSWORD");
 		Assert.state(StringUtils.hasLength(password) || allowEmpty, "No ClickHouse password found");
 		return (password != null) ? password : "";
diff --git a/spring-boot-project/spring-boot-docker-compose/src/test/java/org/springframework/boot/docker/compose/service/connection/clickhouse/ClickHouseEnvironmentTests.java b/spring-boot-project/spring-boot-docker-compose/src/test/java/org/springframework/boot/docker/compose/service/connection/clickhouse/ClickHouseEnvironmentTests.java
index 3b0bc26af1f..24d9770d6ab 100644
--- a/spring-boot-project/spring-boot-docker-compose/src/test/java/org/springframework/boot/docker/compose/service/connection/clickhouse/ClickHouseEnvironmentTests.java
+++ b/spring-boot-project/spring-boot-docker-compose/src/test/java/org/springframework/boot/docker/compose/service/connection/clickhouse/ClickHouseEnvironmentTests.java
@@ -1,5 +1,5 @@
 /*
- * Copyright 2012-2024 the original author or authors.
+ * Copyright 2012-2025 the original author or authors.
  *
  * Licensed under the Apache License, Version 2.0 (the "License");
  * you may not use this file except in compliance with the License.
@@ -50,10 +50,9 @@ class ClickHouseEnvironmentTests {
 	}
 
 	@Test
-	void getPasswordWhenHasNoPasswordAndAllowEmptyPasswordIsFalse() {
-		assertThatIllegalStateException()
-			.isThrownBy(() -> new ClickHouseEnvironment(Map.of("ALLOW_EMPTY_PASSWORD", "false")))
-			.withMessage("No ClickHouse password found");
+	void getPasswordWhenHasNoPasswordAndAllowEmptyPasswordIsYes() {
+		ClickHouseEnvironment environment = new ClickHouseEnvironment(Map.of("ALLOW_EMPTY_PASSWORD", "yes"));
+		assertThat(environment.getPassword()).isEmpty();
 	}
 
 	@Test