diff --git a/pype/ftrack/lib/ftrack_app_handler.py b/pype/ftrack/lib/ftrack_app_handler.py
index 825a0a1985..5dd33c1492 100644
--- a/pype/ftrack/lib/ftrack_app_handler.py
+++ b/pype/ftrack/lib/ftrack_app_handler.py
@@ -268,7 +268,14 @@ class AppAction(BaseHandler):
         if application.get("launch_hook"):
             hook = application.get("launch_hook")
             self.log.info("launching hook: {}".format(hook))
-            pypelib.execute_hook(application.get("launch_hook"))
+            ret_val = pypelib.execute_hook(
+                application.get("launch_hook"), env=env)
+            if not ret_val:
+                return {
+                    'success': False,
+                    'message': "Hook didn't finish successfully {0}"
+                    .format(self.label)
+                    }
 
         if sys.platform == "win32":
 
diff --git a/pype/hooks/unreal/unreal_prelaunch.py b/pype/hooks/unreal/unreal_prelaunch.py
index 05d95a0b2a..83ba4bf8aa 100644
--- a/pype/hooks/unreal/unreal_prelaunch.py
+++ b/pype/hooks/unreal/unreal_prelaunch.py
@@ -1,8 +1,82 @@
+import logging
+import os
+
 from pype.lib import PypeHook
+from pype.unreal import lib as unreal_lib
+from pypeapp import Logger
+
+log = logging.getLogger(__name__)
 
 
 class UnrealPrelaunch(PypeHook):
+    """
+    This hook will check if current workfile path has Unreal
+    project inside. IF not, it initialize it and finally it pass
+    path to the project by environment variable to Unreal launcher
+    shell script.
+    """
 
-    def execute(**kwargs):
-        print("I am inside!!!")
-        pass
+    def __init__(self, logger=None):
+        if not logger:
+            self.log = Logger().get_logger(self.__class__.__name__)
+        else:
+            self.log = logger
+
+        self.signature = "( {} )".format(self.__class__.__name__)
+
+    def execute(self, *args, env: dict = None) -> bool:
+        if not env:
+            env = os.environ
+        asset = env["AVALON_ASSET"]
+        task = env["AVALON_TASK"]
+        workdir = env["AVALON_WORKDIR"]
+        engine_version = env["AVALON_APP_NAME"].split("_")[-1]
+        project_name = f"{asset}_{task}"
+
+        # Unreal is sensitive about project names longer then 20 chars
+        if len(project_name) > 20:
+            self.log.warning((f"Project name exceed 20 characters "
+                              f"[ {project_name} ]!"))
+
+        # Unreal doesn't accept non alphabet characters at the start
+        # of the project name. This is because project name is then used
+        # in various places inside c++ code and there variable names cannot
+        # start with non-alpha. We append 'P' before project name to solve it.
+        # :scream:
+        if not project_name[:1].isalpha():
+            self.log.warning(f"Project name doesn't start with alphabet "
+                             f"character ({project_name}). Appending 'P'")
+            project_name = f"P{project_name}"
+
+        project_path = os.path.join(workdir, project_name)
+
+        self.log.info((f"{self.signature} requested UE4 version: "
+                       f"[ {engine_version} ]"))
+
+        detected = unreal_lib.get_engine_versions()
+        detected_str = ', '.join(detected.keys()) or 'none'
+        self.log.info((f"{self.signature} detected UE4 versions: "
+                       f"[ {detected_str} ]"))
+        del(detected_str)
+        engine_version = ".".join(engine_version.split(".")[:2])
+        if engine_version not in detected.keys():
+            self.log.error((f"{self.signature} requested version not "
+                            f"detected [ {engine_version} ]"))
+            return False
+
+        os.makedirs(project_path, exist_ok=True)
+
+        project_file = os.path.join(project_path, f"{project_name}.uproject")
+        if not os.path.isfile(project_file):
+            self.log.info((f"{self.signature} creating unreal "
+                           f"project [ {project_name} ]"))
+            if env.get("AVALON_UNREAL_PLUGIN"):
+                os.environ["AVALON_UNREAL_PLUGIN"] = env.get("AVALON_UNREAL_PLUGIN")  # noqa: E501
+            unreal_lib.create_unreal_project(project_name,
+                                             engine_version, project_path)
+
+            self.log.info((f"{self.signature} preparing unreal project ... "))
+            unreal_lib.prepare_project(project_file, detected[engine_version])
+
+        env["PYPE_UNREAL_PROJECT_FILE"] = project_file
+        return True
diff --git a/pype/lib.py b/pype/lib.py
index d1062e468f..87c206e758 100644
--- a/pype/lib.py
+++ b/pype/lib.py
@@ -597,7 +597,20 @@ class CustomNone:
         return "<CustomNone-{}>".format(str(self.identifier))
 
 
-def execute_hook(hook, **kwargs):
+def execute_hook(hook, *args, **kwargs):
+    """
+    This will load hook file, instantiate class and call `execute` method
+    on it. Hook must be in a form:
+
+    `$PYPE_ROOT/repos/pype/path/to/hook.py/HookClass`
+
+    This will load `hook.py`, instantiate HookClass and then execute_hook
+    `execute(*args, **kwargs)`
+
+    :param hook: path to hook class
+    :type hook: str
+    """
+
     class_name = hook.split("/")[-1]
 
     abspath = os.path.join(os.getenv('PYPE_ROOT'),
@@ -606,14 +619,11 @@ def execute_hook(hook, **kwargs):
     mod_name, mod_ext = os.path.splitext(os.path.basename(abspath))
 
     if not mod_ext == ".py":
-        return
+        return False
 
     module = types.ModuleType(mod_name)
     module.__file__ = abspath
 
-    log.info("-" * 80)
-    print(module)
-
     try:
         with open(abspath) as f:
             six.exec_(f.read(), module.__dict__)
@@ -623,13 +633,12 @@ def execute_hook(hook, **kwargs):
     except Exception as exp:
         log.exception("loading hook failed: {}".format(exp),
                       exc_info=True)
+        return False
 
-    from pprint import pprint
-    print("-" * 80)
-    pprint(dir(module))
-
-    hook_obj = globals()[class_name]()
-    hook_obj.execute(**kwargs)
+    obj = getattr(module, class_name)
+    hook_obj = obj()
+    ret_val = hook_obj.execute(*args, **kwargs)
+    return ret_val
 
 
 @six.add_metaclass(ABCMeta)
@@ -639,5 +648,5 @@ class PypeHook:
         pass
 
     @abstractmethod
-    def execute(**kwargs):
+    def execute(self, *args, **kwargs):
         pass
diff --git a/pype/unreal/__init__.py b/pype/unreal/__init__.py
new file mode 100644
index 0000000000..e69de29bb2
diff --git a/pype/unreal/lib.py b/pype/unreal/lib.py
new file mode 100644
index 0000000000..8217e834a3
--- /dev/null
+++ b/pype/unreal/lib.py
@@ -0,0 +1,305 @@
+import os
+import platform
+import json
+from distutils import dir_util
+import subprocess
+
+
+def get_engine_versions():
+    """
+    This will try to detect location and versions of installed Unreal Engine.
+    Location can be overridden by `UNREAL_ENGINE_LOCATION` environment
+    variable.
+
+    Returns dictionary with version as a key and dir as value.
+    """
+    try:
+        engine_locations = {}
+        root, dirs, files = next(os.walk(os.environ["UNREAL_ENGINE_LOCATION"]))
+
+        for dir in dirs:
+            if dir.startswith("UE_"):
+                ver = dir.split("_")[1]
+                engine_locations[ver] = os.path.join(root, dir)
+    except KeyError:
+        # environment variable not set
+        pass
+    except OSError:
+        # specified directory doesn't exists
+        pass
+
+    # if we've got something, terminate autodetection process
+    if engine_locations:
+        return engine_locations
+
+    # else kick in platform specific detection
+    if platform.system().lower() == "windows":
+        return _win_get_engine_versions()
+    elif platform.system().lower() == "linux":
+        # on linux, there is no installation and getting Unreal Engine involves
+        # git clone. So we'll probably depend on `UNREAL_ENGINE_LOCATION`.
+        pass
+    elif platform.system().lower() == "darwin":
+        return _darwin_get_engine_version()
+
+    return {}
+
+
+def _win_get_engine_versions():
+    """
+    If engines are installed via Epic Games Launcher then there is:
+    `%PROGRAMDATA%/Epic/UnrealEngineLauncher/LauncherInstalled.dat`
+    This file is JSON file listing installed stuff, Unreal engines
+    are marked with `"AppName" = "UE_X.XX"`` like `UE_4.24`
+    """
+    install_json_path = os.path.join(
+        os.environ.get("PROGRAMDATA"),
+        "Epic",
+        "UnrealEngineLauncher",
+        "LauncherInstalled.dat",
+    )
+
+    return _parse_launcher_locations(install_json_path)
+
+
+def _darwin_get_engine_version():
+    """
+    It works the same as on Windows, just JSON file location is different.
+    """
+    install_json_path = os.path.join(
+        os.environ.get("HOME"),
+        "Library",
+        "Application Support",
+        "Epic",
+        "UnrealEngineLauncher",
+        "LauncherInstalled.dat",
+    )
+
+    return _parse_launcher_locations(install_json_path)
+
+
+def _parse_launcher_locations(install_json_path):
+    engine_locations = {}
+    if os.path.isfile(install_json_path):
+        with open(install_json_path, "r") as ilf:
+            try:
+                install_data = json.load(ilf)
+            except json.JSONDecodeError:
+                raise Exception(
+                    "Invalid `LauncherInstalled.dat file. `"
+                    "Cannot determine Unreal Engine location."
+                )
+
+        for installation in install_data.get("InstallationList", []):
+            if installation.get("AppName").startswith("UE_"):
+                ver = installation.get("AppName").split("_")[1]
+                engine_locations[ver] = installation.get("InstallLocation")
+
+    return engine_locations
+
+
+def create_unreal_project(project_name, ue_version, dir):
+    """
+    This will create `.uproject` file at specified location. As there is no
+    way I know to create project via command line, this is easiest option.
+    Unreal project file is basically JSON file. If we find
+    `AVALON_UNREAL_PLUGIN` environment variable we assume this is location
+    of Avalon Integration Plugin and we copy its content to project folder
+    and enable this plugin.
+    """
+
+    if os.path.isdir(os.environ.get("AVALON_UNREAL_PLUGIN", "")):
+        # copy plugin to correct path under project
+        plugin_path = os.path.join(dir, "Plugins", "Avalon")
+        if not os.path.isdir(plugin_path):
+            os.makedirs(plugin_path, exist_ok=True)
+            dir_util._path_created = {}
+            dir_util.copy_tree(os.environ.get("AVALON_UNREAL_PLUGIN"),
+                               plugin_path)
+
+    data = {
+        "FileVersion": 3,
+        "EngineAssociation": ue_version,
+        "Category": "",
+        "Description": "",
+        "Modules": [
+            {
+                "Name": project_name,
+                "Type": "Runtime",
+                "LoadingPhase": "Default",
+                "AdditionalDependencies": ["Engine"],
+            }
+        ],
+        "Plugins": [
+            {"Name": "PythonScriptPlugin", "Enabled": True},
+            {"Name": "EditorScriptingUtilities", "Enabled": True},
+            {"Name": "Avalon", "Enabled": True},
+        ],
+    }
+
+    project_file = os.path.join(dir, "{}.uproject".format(project_name))
+    with open(project_file, mode="w") as pf:
+        json.dump(data, pf, indent=4)
+
+
+def prepare_project(project_file: str, engine_path: str):
+    """
+    This function will add source files needed for project to be
+    rebuild along with the avalon integration plugin.
+
+    There seems not to be automated way to do it from command line.
+    But there might be way to create at least those target and build files
+    by some generator. This needs more research as manually writing
+    those files is rather hackish. :skull_and_crossbones:
+
+    :param project_file: path to .uproject file
+    :type project_file: str
+    :param engine_path: path to unreal engine associated with project
+    :type engine_path: str
+    """
+
+    project_name = os.path.splitext(os.path.basename(project_file))[0]
+    project_dir = os.path.dirname(project_file)
+    targets_dir = os.path.join(project_dir, "Source")
+    sources_dir = os.path.join(targets_dir, project_name)
+
+    os.makedirs(sources_dir, exist_ok=True)
+    os.makedirs(os.path.join(project_dir, "Content"), exist_ok=True)
+
+    module_target = '''
+using UnrealBuildTool;
+using System.Collections.Generic;
+
+public class {0}Target : TargetRules
+{{
+    public {0}Target( TargetInfo Target) : base(Target)
+    {{
+        Type = TargetType.Game;
+        ExtraModuleNames.AddRange( new string[] {{ "{0}" }} );
+    }}
+}}
+'''.format(project_name)
+
+    editor_module_target = '''
+using UnrealBuildTool;
+using System.Collections.Generic;
+
+public class {0}EditorTarget : TargetRules
+{{
+    public {0}EditorTarget( TargetInfo Target) : base(Target)
+    {{
+        Type = TargetType.Editor;
+
+        ExtraModuleNames.AddRange( new string[] {{ "{0}" }} );
+    }}
+}}
+'''.format(project_name)
+
+    module_build = '''
+using UnrealBuildTool;
+public class {0} : ModuleRules
+{{
+    public {0}(ReadOnlyTargetRules Target) : base(Target)
+    {{
+        PCHUsage = PCHUsageMode.UseExplicitOrSharedPCHs;
+        PublicDependencyModuleNames.AddRange(new string[] {{ "Core",
+            "CoreUObject", "Engine", "InputCore" }});
+        PrivateDependencyModuleNames.AddRange(new string[] {{  }});
+    }}
+}}
+'''.format(project_name)
+
+    module_cpp = '''
+#include "{0}.h"
+#include "Modules/ModuleManager.h"
+
+IMPLEMENT_PRIMARY_GAME_MODULE( FDefaultGameModuleImpl, {0}, "{0}" );
+'''.format(project_name)
+
+    module_header = '''
+#pragma once
+#include "CoreMinimal.h"
+'''
+
+    game_mode_cpp = '''
+#include "{0}GameModeBase.h"
+'''.format(project_name)
+
+    game_mode_h = '''
+#pragma once
+
+#include "CoreMinimal.h"
+#include "GameFramework/GameModeBase.h"
+#include "{0}GameModeBase.generated.h"
+
+UCLASS()
+class {1}_API A{0}GameModeBase : public AGameModeBase
+{{
+    GENERATED_BODY()
+}};
+'''.format(project_name, project_name.upper())
+
+    with open(os.path.join(
+            targets_dir, f"{project_name}.Target.cs"), mode="w") as f:
+        f.write(module_target)
+
+    with open(os.path.join(
+            targets_dir, f"{project_name}Editor.Target.cs"), mode="w") as f:
+        f.write(editor_module_target)
+
+    with open(os.path.join(
+            sources_dir, f"{project_name}.Build.cs"), mode="w") as f:
+        f.write(module_build)
+
+    with open(os.path.join(
+            sources_dir, f"{project_name}.cpp"), mode="w") as f:
+        f.write(module_cpp)
+
+    with open(os.path.join(
+            sources_dir, f"{project_name}.h"), mode="w") as f:
+        f.write(module_header)
+
+    with open(os.path.join(
+            sources_dir, f"{project_name}GameModeBase.cpp"), mode="w") as f:
+        f.write(game_mode_cpp)
+
+    with open(os.path.join(
+            sources_dir, f"{project_name}GameModeBase.h"), mode="w") as f:
+        f.write(game_mode_h)
+
+    if platform.system().lower() == "windows":
+        u_build_tool = (f"{engine_path}/Engine/Binaries/DotNET/"
+                        "UnrealBuildTool.exe")
+        u_header_tool = (f"{engine_path}/Engine/Binaries/Win64/"
+                         f"UnrealHeaderTool.exe")
+    elif platform.system().lower() == "linux":
+        # WARNING: there is no UnrealBuildTool on linux?
+        u_build_tool = ""
+        u_header_tool = ""
+    elif platform.system().lower() == "darwin":
+        # WARNING: there is no UnrealBuildTool on Mac?
+        u_build_tool = ""
+        u_header_tool = ""
+
+    u_build_tool = u_build_tool.replace("\\", "/")
+    u_header_tool = u_header_tool.replace("\\", "/")
+
+    command1 = [u_build_tool, "-projectfiles", f"-project={project_file}",
+                "-progress"]
+
+    subprocess.run(command1)
+
+    command2 = [u_build_tool, f"-ModuleWithSuffix={project_name},3555"
+                "Win64", "Development", "-TargetType=Editor"
+                f'-Project="{project_file}"', f'"{project_file}"'
+                "-IgnoreJunk"]
+
+    subprocess.run(command2)
+
+    uhtmanifest = os.path.join(os.path.dirname(project_file),
+                               f"{project_name}.uhtmanifest")
+
+    command3 = [u_header_tool, f'"{project_file}"', f'"{uhtmanifest}"',
+                "-Unattended", "-WarningsAsErrors", "-installed"]
+
+    subprocess.run(command3)