diff --git a/act/runner/action.go b/act/runner/action.go
index fdfc6373..d27f0a84 100644
--- a/act/runner/action.go
+++ b/act/runner/action.go
@@ -277,7 +277,6 @@ func removeGitIgnore(ctx context.Context, directory string) error {
 	return nil
 }
 
-// TODO: break out parts of function to reduce complexicity
 func execAsDocker(ctx context.Context, step actionStep, actionName, basedir string, localAction bool) error {
 	logger := common.Logger(ctx)
 	rc := step.getRunContext()
@@ -291,10 +290,11 @@ func execAsDocker(ctx context.Context, step actionStep, actionName, basedir stri
 		// Apply forcePull only for prebuild docker images
 		forcePull = rc.Config.ForcePull
 	} else {
-		// "-dockeraction" enshures that "./", "./test " won't get converted to "act-:latest", "act-test-:latest" which are invalid docker image names
-		image = fmt.Sprintf("%s-dockeraction:%s", regexp.MustCompile("[^a-zA-Z0-9]").ReplaceAllString(actionName, "-"), "latest")
-		image = fmt.Sprintf("act-%s", strings.TrimLeft(image, "-"))
-		image = strings.ToLower(image)
+		if localAction {
+			image = fmt.Sprintf("runner-local-docker-action-%s:latest", common.MustRandName(16))
+		} else {
+			image = fmt.Sprintf("runner-remote-docker-action-%s:latest", common.Sha256(step.getStepModel().Uses))
+		}
 		contextDir, fileName := filepath.Split(filepath.Join(basedir, action.Runs.Image))
 
 		anyArchExists, err := container.ImageExistsLocally(ctx, image, "any")
diff --git a/act/runner/runner_test.go b/act/runner/runner_test.go
index 83523c1e..7f3b46e9 100644
--- a/act/runner/runner_test.go
+++ b/act/runner/runner_test.go
@@ -245,6 +245,8 @@ func TestRunner_RunEvent(t *testing.T) {
 		{workdir, "local-action-fails-schema-validation", "push", "Job 'test' failed", platforms, secrets},
 		{workdir, "local-action-docker-url", "push", "", platforms, secrets},
 		{workdir, "local-action-dockerfile", "push", "", platforms, secrets},
+		{workdir + "/local-action-dockerfile-tag/example1", "local-action-dockerfile-example1", "push", "", platforms, secrets},
+		{workdir + "/local-action-dockerfile-tag/example2", "local-action-dockerfile-example2", "push", "", platforms, secrets},
 		{workdir, "local-action-via-composite-dockerfile", "push", "", platforms, secrets},
 		{workdir, "local-action-js", "push", "", platforms, secrets},
 
diff --git a/act/runner/testdata/local-action-dockerfile-tag/README.txt b/act/runner/testdata/local-action-dockerfile-tag/README.txt
new file mode 100644
index 00000000..aba97f3b
--- /dev/null
+++ b/act/runner/testdata/local-action-dockerfile-tag/README.txt
@@ -0,0 +1,4 @@
+example1 and example2 eacho use a local actions that have the same
+path (actions/docker-local) but do not behave the same. This verifies
+that the locally built images have different names and do not collide
+despite both being called with `uses: ./actions/docker-local.
diff --git a/act/runner/testdata/local-action-dockerfile-tag/example1/actions/docker-local/Dockerfile b/act/runner/testdata/local-action-dockerfile-tag/example1/actions/docker-local/Dockerfile
new file mode 100644
index 00000000..b8054873
--- /dev/null
+++ b/act/runner/testdata/local-action-dockerfile-tag/example1/actions/docker-local/Dockerfile
@@ -0,0 +1,8 @@
+# Container image that runs your code
+FROM code.forgejo.org/oci/alpine:latest
+
+# Copies your code file from your action repository to the filesystem path `/` of the container
+COPY entrypoint.sh /entrypoint.sh
+
+# Code file to execute when the docker container starts up (`entrypoint.sh`)
+ENTRYPOINT ["/entrypoint.sh"]
diff --git a/act/runner/testdata/local-action-dockerfile-tag/example1/actions/docker-local/action.yml b/act/runner/testdata/local-action-dockerfile-tag/example1/actions/docker-local/action.yml
new file mode 100644
index 00000000..a6b97460
--- /dev/null
+++ b/act/runner/testdata/local-action-dockerfile-tag/example1/actions/docker-local/action.yml
@@ -0,0 +1,12 @@
+inputs:
+  who-to-greet:
+outputs:
+  whoami:
+    description: 'The time we greeted you'
+runs:
+  using: 'docker'
+  image: 'Dockerfile'
+  env:
+    WHOAMI: ${{ inputs.who-to-greet }}
+  args:
+    - ${{ inputs.who-to-greet }}
diff --git a/act/runner/testdata/local-action-dockerfile-tag/example1/actions/docker-local/entrypoint.sh b/act/runner/testdata/local-action-dockerfile-tag/example1/actions/docker-local/entrypoint.sh
new file mode 100755
index 00000000..7047838a
--- /dev/null
+++ b/act/runner/testdata/local-action-dockerfile-tag/example1/actions/docker-local/entrypoint.sh
@@ -0,0 +1,3 @@
+#!/bin/sh
+
+echo ::set-output "name=whoami::example1 $WHOAMI"
diff --git a/act/runner/testdata/local-action-dockerfile-tag/example1/local-action-dockerfile-example1/push.yml b/act/runner/testdata/local-action-dockerfile-tag/example1/local-action-dockerfile-example1/push.yml
new file mode 100644
index 00000000..fd24e76e
--- /dev/null
+++ b/act/runner/testdata/local-action-dockerfile-tag/example1/local-action-dockerfile-example1/push.yml
@@ -0,0 +1,11 @@
+on: push
+jobs:
+  test:
+    runs-on: ubuntu-latest
+    steps:
+    - uses: actions/checkout@v4
+    - uses: ./actions/docker-local
+      id: dockerlocal
+      with:
+        who-to-greet: 'SOMEONE'
+    - run: '[[ "${{ steps.dockerlocal.outputs.whoami }}" == "example1 SOMEONE" ]]'
diff --git a/act/runner/testdata/local-action-dockerfile-tag/example2/actions/docker-local/Dockerfile b/act/runner/testdata/local-action-dockerfile-tag/example2/actions/docker-local/Dockerfile
new file mode 100644
index 00000000..b8054873
--- /dev/null
+++ b/act/runner/testdata/local-action-dockerfile-tag/example2/actions/docker-local/Dockerfile
@@ -0,0 +1,8 @@
+# Container image that runs your code
+FROM code.forgejo.org/oci/alpine:latest
+
+# Copies your code file from your action repository to the filesystem path `/` of the container
+COPY entrypoint.sh /entrypoint.sh
+
+# Code file to execute when the docker container starts up (`entrypoint.sh`)
+ENTRYPOINT ["/entrypoint.sh"]
diff --git a/act/runner/testdata/local-action-dockerfile-tag/example2/actions/docker-local/action.yml b/act/runner/testdata/local-action-dockerfile-tag/example2/actions/docker-local/action.yml
new file mode 100644
index 00000000..a6b97460
--- /dev/null
+++ b/act/runner/testdata/local-action-dockerfile-tag/example2/actions/docker-local/action.yml
@@ -0,0 +1,12 @@
+inputs:
+  who-to-greet:
+outputs:
+  whoami:
+    description: 'The time we greeted you'
+runs:
+  using: 'docker'
+  image: 'Dockerfile'
+  env:
+    WHOAMI: ${{ inputs.who-to-greet }}
+  args:
+    - ${{ inputs.who-to-greet }}
diff --git a/act/runner/testdata/local-action-dockerfile-tag/example2/actions/docker-local/entrypoint.sh b/act/runner/testdata/local-action-dockerfile-tag/example2/actions/docker-local/entrypoint.sh
new file mode 100755
index 00000000..c6750948
--- /dev/null
+++ b/act/runner/testdata/local-action-dockerfile-tag/example2/actions/docker-local/entrypoint.sh
@@ -0,0 +1,3 @@
+#!/bin/sh
+
+echo ::set-output "name=whoami::example2 $WHOAMI"
diff --git a/act/runner/testdata/local-action-dockerfile-tag/example2/local-action-dockerfile-example2/push.yml b/act/runner/testdata/local-action-dockerfile-tag/example2/local-action-dockerfile-example2/push.yml
new file mode 100644
index 00000000..b6f39f47
--- /dev/null
+++ b/act/runner/testdata/local-action-dockerfile-tag/example2/local-action-dockerfile-example2/push.yml
@@ -0,0 +1,11 @@
+on: push
+jobs:
+  test:
+    runs-on: ubuntu-latest
+    steps:
+    - uses: actions/checkout@v4
+    - uses: ./actions/docker-local
+      id: dockerlocal
+      with:
+        who-to-greet: 'SOMEONE'
+    - run: '[[ "${{ steps.dockerlocal.outputs.whoami }}" == "example2 SOMEONE" ]]'