diff --git a/modules/localstack/src/main/java/org/testcontainers/containers/localstack/LocalStackContainer.java b/modules/localstack/src/main/java/org/testcontainers/containers/localstack/LocalStackContainer.java
index 6da5857adaa..a4b2224e1d2 100644
--- a/modules/localstack/src/main/java/org/testcontainers/containers/localstack/LocalStackContainer.java
+++ b/modules/localstack/src/main/java/org/testcontainers/containers/localstack/LocalStackContainer.java
@@ -21,17 +21,18 @@
 import java.util.stream.Collectors;
 
 /**
- * <p>Container for LocalStack, 'A fully functional local AWS cloud stack'.</p>
- * <p>{@link LocalStackContainer#withServices(Service...)} should be used to select which services
- * are to be launched. See {@link Service} for available choices.
+ * Testcontainers implementation for LocalStack.
  */
 @Slf4j
 public class LocalStackContainer extends GenericContainer<LocalStackContainer> {
 
     static final int PORT = 4566;
 
+    @Deprecated
     private static final String HOSTNAME_EXTERNAL_ENV_VAR = "HOSTNAME_EXTERNAL";
 
+    private static final String LOCALSTACK_HOST_ENV_VAR = "LOCALSTACK_HOST";
+
     private final List<EnabledService> services = new ArrayList<>();
 
     private static final DockerImageName DEFAULT_IMAGE_NAME = DockerImageName.parse("localstack/localstack");
@@ -66,6 +67,8 @@ public class LocalStackContainer extends GenericContainer<LocalStackContainer> {
      */
     private final boolean servicesEnvVarRequired;
 
+    private final boolean isVersion2;
+
     /**
      * @deprecated use {@link LocalStackContainer(DockerImageName)} instead
      */
@@ -92,18 +95,31 @@ public LocalStackContainer(final DockerImageName dockerImageName) {
     /**
      * @param dockerImageName    image name to use for Localstack
      * @param useLegacyMode      if true, each AWS service is exposed on a different port
+     * @deprecated use {@link LocalStackContainer(DockerImageName)} instead
      */
+    @Deprecated
     public LocalStackContainer(final DockerImageName dockerImageName, boolean useLegacyMode) {
         super(dockerImageName);
         dockerImageName.assertCompatibleWith(DEFAULT_IMAGE_NAME);
 
         this.legacyMode = useLegacyMode;
-        this.servicesEnvVarRequired = isServicesEnvVarRequired(dockerImageName.getVersionPart());
+        String version = dockerImageName.getVersionPart();
+        this.servicesEnvVarRequired = isServicesEnvVarRequired(version);
+        this.isVersion2 = isVersion2(version);
 
         withFileSystemBind(DockerClientFactory.instance().getRemoteDockerUnixSocketPath(), "/var/run/docker.sock");
         waitingFor(Wait.forLogMessage(".*Ready\\.\n", 1));
     }
 
+    private static boolean isVersion2(String version) {
+        if (version.equals("latest")) {
+            return true;
+        }
+
+        ComparableVersion comparableVersion = new ComparableVersion(version);
+        return comparableVersion.isGreaterThanOrEqualTo("2.0.0");
+    }
+
     private static boolean isServicesEnvVarRequired(String version) {
         if (version.equals("latest")) {
             return false;
@@ -141,7 +157,7 @@ private static boolean shouldRunInLegacyMode(String version) {
     protected void configure() {
         super.configure();
 
-        if (servicesEnvVarRequired) {
+        if (this.servicesEnvVarRequired) {
             Preconditions.check("services list must not be empty", !services.isEmpty());
         }
 
@@ -152,26 +168,30 @@ protected void configure() {
             }
         }
 
+        if (this.isVersion2) {
+            resolveHostname(LOCALSTACK_HOST_ENV_VAR);
+        } else {
+            resolveHostname(HOSTNAME_EXTERNAL_ENV_VAR);
+        }
+
+        exposePorts();
+    }
+
+    private void resolveHostname(String envVar) {
         String hostnameExternalReason;
-        if (getEnvMap().containsKey(HOSTNAME_EXTERNAL_ENV_VAR)) {
+        if (getEnvMap().containsKey(envVar)) {
             // do nothing
             hostnameExternalReason = "explicitly as environment variable";
         } else if (getNetwork() != null && getNetworkAliases() != null && getNetworkAliases().size() >= 1) {
-            withEnv(HOSTNAME_EXTERNAL_ENV_VAR, getNetworkAliases().get(getNetworkAliases().size() - 1)); // use the last network alias set
+            withEnv(envVar, getNetworkAliases().get(getNetworkAliases().size() - 1)); // use the last network alias set
             hostnameExternalReason = "to match last network alias on container with non-default network";
         } else {
-            withEnv(HOSTNAME_EXTERNAL_ENV_VAR, getHost());
+            withEnv(envVar, getHost());
             hostnameExternalReason = "to match host-routable address for container";
         }
-        logger()
-            .info(
-                "{} environment variable set to {} ({})",
-                HOSTNAME_EXTERNAL_ENV_VAR,
-                getEnvMap().get(HOSTNAME_EXTERNAL_ENV_VAR),
-                hostnameExternalReason
-            );
 
-        exposePorts();
+        logger()
+            .info("{} environment variable set to {} ({})", envVar, getEnvMap().get(envVar), hostnameExternalReason);
     }
 
     private void exposePorts() {
diff --git a/modules/localstack/src/test/java/org/testcontainers/containers/localstack/LocalstackContainerTest.java b/modules/localstack/src/test/java/org/testcontainers/containers/localstack/LocalstackContainerTest.java
index b99c455ae19..30682388af5 100644
--- a/modules/localstack/src/test/java/org/testcontainers/containers/localstack/LocalstackContainerTest.java
+++ b/modules/localstack/src/test/java/org/testcontainers/containers/localstack/LocalstackContainerTest.java
@@ -30,6 +30,7 @@
 import org.testcontainers.containers.GenericContainer;
 import org.testcontainers.containers.Network;
 import org.testcontainers.containers.localstack.LocalStackContainer.Service;
+import org.testcontainers.utility.DockerImageName;
 import software.amazon.awssdk.auth.credentials.AwsBasicCredentials;
 import software.amazon.awssdk.auth.credentials.StaticCredentialsProvider;
 import software.amazon.awssdk.regions.Region;
@@ -265,6 +266,11 @@ public static class WithNetwork {
             .withEnv("AWS_SECRET_ACCESS_KEY", "secretkey")
             .withEnv("AWS_REGION", "eu-west-1");
 
+        @Test
+        public void localstackHostEnVarIsSet() {
+            assertThat(localstackInDockerNetwork.getEnvMap().get("HOSTNAME_EXTERNAL")).isEqualTo("localstack");
+        }
+
         @Test
         public void s3TestOverDockerNetwork() throws Exception {
             runAwsCliAgainstDockerNetworkContainer(
@@ -357,17 +363,92 @@ public static class WithoutServices {
 
         @Test
         public void s3ServiceStartLazily() {
-            S3Client s3 = S3Client
-                .builder()
-                .endpointOverride(localstack.getEndpointOverride(Service.S3))
-                .credentialsProvider(
-                    StaticCredentialsProvider.create(
-                        AwsBasicCredentials.create(localstack.getAccessKey(), localstack.getSecretKey())
+            try (
+                S3Client s3 = S3Client
+                    .builder()
+                    .endpointOverride(localstack.getEndpointOverride(Service.S3))
+                    .credentialsProvider(
+                        StaticCredentialsProvider.create(
+                            AwsBasicCredentials.create(localstack.getAccessKey(), localstack.getSecretKey())
+                        )
                     )
+                    .region(Region.of(localstack.getRegion()))
+                    .build()
+            ) {
+                assertThat(s3.listBuckets().buckets()).as("S3 Service is started lazily").isEmpty();
+            }
+        }
+    }
+
+    public static class WithVersion2 {
+
+        private static Network network = Network.newNetwork();
+
+        @ClassRule
+        public static LocalStackContainer localstack = new LocalStackContainer(
+            DockerImageName.parse("localstack/localstack:2.0")
+        )
+            .withNetwork(network)
+            .withNetworkAliases("localstack");
+
+        @ClassRule
+        public static GenericContainer<?> awsCliInDockerNetwork = new GenericContainer<>(
+            LocalstackTestImages.AWS_CLI_IMAGE
+        )
+            .withNetwork(network)
+            .withCreateContainerCmdModifier(cmd -> cmd.withEntrypoint("tail"))
+            .withCommand(" -f /dev/null")
+            .withEnv("AWS_ACCESS_KEY_ID", "accesskey")
+            .withEnv("AWS_SECRET_ACCESS_KEY", "secretkey")
+            .withEnv("AWS_REGION", "eu-west-1");
+
+        @Test
+        public void localstackHostEnVarIsSet() {
+            assertThat(localstack.getEnvMap().get("LOCALSTACK_HOST")).isEqualTo("localstack");
+        }
+
+        @Test
+        public void sqsTestOverDockerNetwork() throws Exception {
+            final String queueCreationResponse = runAwsCliAgainstDockerNetworkContainer(
+                "sqs create-queue --queue-name baz"
+            );
+
+            assertThat(queueCreationResponse)
+                .as("Created queue has external hostname URL")
+                .contains("http://localstack:" + LocalStackContainer.PORT);
+
+            runAwsCliAgainstDockerNetworkContainer(
+                String.format(
+                    "sqs send-message --endpoint http://localstack:%d --queue-url http://localstack:%d/queue/baz --message-body test",
+                    LocalStackContainer.PORT,
+                    LocalStackContainer.PORT
                 )
-                .region(Region.of(localstack.getRegion()))
-                .build();
-            assertThat(s3.listBuckets().buckets()).as("S3 Service is started lazily").isEmpty();
+            );
+            final String message = runAwsCliAgainstDockerNetworkContainer(
+                String.format(
+                    "sqs receive-message --endpoint http://localstack:%d --queue-url http://localstack:%d/queue/baz",
+                    LocalStackContainer.PORT,
+                    LocalStackContainer.PORT
+                )
+            );
+
+            assertThat(message).as("the sent message can be received").contains("\"Body\": \"test\"");
+        }
+
+        private String runAwsCliAgainstDockerNetworkContainer(String command) throws Exception {
+            final String[] commandParts = String
+                .format(
+                    "/usr/local/bin/aws --region eu-west-1 %s --endpoint-url http://localstack:%d --no-verify-ssl",
+                    command,
+                    LocalStackContainer.PORT
+                )
+                .split(" ");
+            final Container.ExecResult execResult = awsCliInDockerNetwork.execInContainer(commandParts);
+            assertThat(execResult.getExitCode()).isEqualTo(0);
+
+            final String logs = execResult.getStdout() + execResult.getStderr();
+            log.info(logs);
+            return logs;
         }
     }
 }