diff --git a/pkg/appfile/appfile.go b/pkg/appfile/appfile.go
index ac93cb58b..991e6a305 100644
--- a/pkg/appfile/appfile.go
+++ b/pkg/appfile/appfile.go
@@ -81,11 +81,12 @@ func (app *AppFile) buildOAM(ns string, io cmdutil.IOStreams, buildImage bool, t
 		v, ok := svc["image"]
 		if ok {
 			image = v.(string)
-		} else {
-			return nil, nil, ErrImageNotDefined
 		}
 
 		if b := svc.GetBuild(); b != nil {
+			if image == "" {
+				return nil, nil, ErrImageNotDefined
+			}
 			if buildImage {
 				io.Infof("\nBuilding service (%s)...\n", sname)
 				if err := b.BuildImage(io, image); err != nil {
@@ -94,8 +95,8 @@ func (app *AppFile) buildOAM(ns string, io cmdutil.IOStreams, buildImage bool, t
 			}
 		}
 
-		io.Infof("\nRendering component configs for service (%s)...\n", sname)
-		acComp, comp, err := svc.RenderService(tm, sname, ns, image)
+		io.Infof("\nRendering configs for service (%s)...\n", sname)
+		acComp, comp, err := svc.RenderService(tm, sname, ns)
 		if err != nil {
 			return nil, nil, err
 		}
diff --git a/pkg/appfile/appfile_test.go b/pkg/appfile/appfile_test.go
index 2abd364ae..4f7560ed2 100644
--- a/pkg/appfile/appfile_test.go
+++ b/pkg/appfile/appfile_test.go
@@ -36,6 +36,9 @@ services:
 	yamlNoImage := `name: myapp
 services:
   bad-server:
+    build:
+      docker:
+        file: Dockerfile
     cmd: ["node", "server.js"]
 `
 
diff --git a/pkg/appfile/service.go b/pkg/appfile/service.go
index ceef65ed0..851c5b499 100644
--- a/pkg/appfile/service.go
+++ b/pkg/appfile/service.go
@@ -62,7 +62,7 @@ func (s Service) GetBuild() *Build {
 
 // RenderService render all capabilities of a service to CUE values of a Component.
 // It outputs a Component which will be marshaled as standalone Component and also returned AppConfig Component section.
-func (s Service) RenderService(tm template.Manager, name, ns, image string) (
+func (s Service) RenderService(tm template.Manager, name, ns string) (
 	*v1alpha2.ApplicationConfigurationComponent, *v1alpha2.Component, error) {
 
 	// sort out configs by workload/trait
@@ -89,8 +89,7 @@ func (s Service) RenderService(tm template.Manager, name, ns, image string) (
 
 	// only render webservice workload for now.
 	ctxData := map[string]string{
-		"name":  name,
-		"image": image,
+		"name": name,
 	}
 	u, err := evalComponent(tm.LoadTemplate(wtype), ctxData, intifyValues(workloadKeys))
 	if err != nil {