diff --git a/act/runner/action.go b/act/runner/action.go
index 61793d9e..ea93c571 100644
--- a/act/runner/action.go
+++ b/act/runner/action.go
@@ -6,7 +6,9 @@ package runner
 
 import (
 	"context"
+	"crypto/sha256"
 	"embed"
+	"encoding/hex"
 	"errors"
 	"fmt"
 	"io"
@@ -272,6 +274,36 @@ func removeGitIgnore(ctx context.Context, directory string) error {
 	return nil
 }
 
+// dockerActionImageTag derives the local docker image tag used when an action
+// is built from a Dockerfile.
+//
+// For Gitea: a local action (`uses: ./` or `uses: ./path`) has an actionName
+// that is the workspace-relative path of the action. That path is identical
+// across repositories (e.g. "./" for a self-referencing action), so without
+// namespacing, every repository's local docker action would build and reuse the
+// same `act-dockeraction:latest` image on a shared docker daemon. A subsequent
+// repository would then silently run the image built for an earlier one.
+// Including the repository keeps the tag stable for caching within a repository
+// while preventing cross-repository collisions.
+// See https://gitea.com/gitea/runner/issues/1039.
+func dockerActionImageTag(repository, actionName string, localAction bool) string {
+	name := actionName
+	if localAction {
+		name = path.Join(repository, actionName)
+	}
+	// The human-readable name is sanitized by collapsing every non-alphanumeric character to "-".
+	sanitized := regexp.MustCompile("[^a-zA-Z0-9]").ReplaceAllString(name, "-")
+	if localAction {
+		// For local actions a short hash of the raw repository and action path is appended so the tag stays unique per repository.
+		sum := sha256.Sum256([]byte(repository + "\x00" + actionName))
+		sanitized += "-" + hex.EncodeToString(sum[:])[:12]
+	}
+	// "-dockeraction" ensures that "./", "./test " won't get converted to "act-:latest", "act-test-:latest" which are invalid docker image names
+	image := fmt.Sprintf("%s-dockeraction:%s", sanitized, "latest")
+	image = "act-" + strings.TrimLeft(image, "-")
+	return strings.ToLower(image)
+}
+
 // TODO: break out parts of function to reduce complexicity
 func execAsDocker(ctx context.Context, step actionStep, actionName, actionDir, basedir string, localAction bool) error {
 	logger := common.Logger(ctx)
@@ -286,10 +318,7 @@ func execAsDocker(ctx context.Context, step actionStep, actionName, actionDir, b
 		// 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 = "act-" + strings.TrimLeft(image, "-")
-		image = strings.ToLower(image)
+		image = dockerActionImageTag(step.getGithubContext(ctx).Repository, actionName, localAction)
 		contextDir, fileName := filepath.Split(filepath.Join(basedir, action.Runs.Image))
 
 		anyArchExists, err := ContainerImageExistsLocally(ctx, image, "any")
diff --git a/act/runner/action_test.go b/act/runner/action_test.go
index c5dc2360..9122e025 100644
--- a/act/runner/action_test.go
+++ b/act/runner/action_test.go
@@ -455,3 +455,50 @@ func TestExecAsDockerHoldsCloneLockForRemoteUncached(t *testing.T) {
 		t.Fatal("execAsDocker did not return after inner was released and ctx was canceled")
 	}
 }
+
+func TestDockerActionImageTag(t *testing.T) {
+	// Remote actions already carry a unique, ref-scoped actionName (the uses
+	// hash), so the tag must be left untouched for backwards compatibility.
+	assert.Equal(t,
+		"act-abc123-dockeraction:latest",
+		dockerActionImageTag("owner/repo", "abc123", false),
+	)
+
+	// Local actions keep a human-readable, repository-namespaced prefix and gain a short hash suffix that makes the tag unique per (repository, actionName).
+	// See https://gitea.com/gitea/runner/issues/1039.
+	assert.Equal(t,
+		"act-owner-repo-baca2daaa2fe-dockeraction:latest",
+		dockerActionImageTag("owner/repo", "./", true),
+	)
+	assert.Equal(t,
+		"act-owner-repo-sub-e847b61255a8-dockeraction:latest",
+		dockerActionImageTag("owner/repo", "./sub", true),
+	)
+
+	// Sanitizing every non-alphanumeric character to "-" is lossy, so distinct inputs can collapse to the same readable prefix.
+	// The hash suffix must keep such cases apart, otherwise an image built for one repository is reused for another.
+	collisions := [][2]struct {
+		repoName   string
+		actionName string
+	}{
+		// Two different repositories, both `uses: ./`: "a/b-c" and "a-b/c" both sanitize to "a-b-c".
+		{{"a/b-c", "./"}, {"a-b/c", "./"}},
+		// A repository's root action vs another repository's sub-path action:
+		// "owner/repo-a" + "./" and "owner/repo" + "./a" both sanitize to "owner-repo-a".
+		{{"owner/repo-a", "./"}, {"owner/repo", "./a"}},
+	}
+	for _, c := range collisions {
+		assert.NotEqual(t,
+			dockerActionImageTag(c[0].repoName, c[0].actionName, true),
+			dockerActionImageTag(c[1].repoName, c[1].actionName, true),
+			"local docker action tags must differ for %q/%q vs %q/%q",
+			c[0].repoName, c[0].actionName, c[1].repoName, c[1].actionName,
+		)
+	}
+
+	// Distinct local actions within the same repository keep distinct tags.
+	assert.NotEqual(t,
+		dockerActionImageTag("owner/repo", "./", true),
+		dockerActionImageTag("owner/repo", "./sub", true),
+	)
+}