diff --git a/openpype/hosts/unreal/integration b/openpype/hosts/unreal/integration
index 63266607ce..ff15c70077 160000
--- a/openpype/hosts/unreal/integration
+++ b/openpype/hosts/unreal/integration
@@ -1 +1 @@
-Subproject commit 63266607ceb972a61484f046634ddfc9eb0b5757
+Subproject commit ff15c700771e719cc5f3d561ac5d6f7590623986
diff --git a/openpype/lib/transcoding.py b/openpype/lib/transcoding.py
index 97c8dd41ab..07acc309d2 100644
--- a/openpype/lib/transcoding.py
+++ b/openpype/lib/transcoding.py
@@ -1149,8 +1149,9 @@ def convert_colorspace(
     target_colorspace=None,
     view=None,
     display=None,
+    additional_input_args=None,
     additional_command_args=None,
-    logger=None
+    logger=None,
 ):
     """Convert source file from one color space to another.
 
@@ -1169,6 +1170,8 @@ def convert_colorspace(
         view (str): name for viewer space (ocio valid)
             both 'view' and 'display' must be filled (if 'target_colorspace')
         display (str): name for display-referred reference space (ocio valid)
+            both 'view' and 'display' must be filled (if 'target_colorspace')
+        additional_input_args (list): input arguments for oiiotool
         additional_command_args (list): arguments for oiiotool (like binary
             depth for .dpx)
         logger (logging.Logger): Logger used for logging.
@@ -1178,12 +1181,21 @@ def convert_colorspace(
     if logger is None:
         logger = logging.getLogger(__name__)
 
-    oiio_cmd = get_oiio_tool_args(
-        "oiiotool",
+    # prepare main oiio command args
+    args = [
         input_path,
         # Don't add any additional attributes
         "--nosoftwareattrib",
         "--colorconfig", config_path
+    ]
+
+    # prepend any additional args if available
+    if additional_input_args:
+        args = additional_input_args + args
+
+    oiio_cmd = get_oiio_tool_args(
+        "oiiotool",
+        *args
     )
 
     if all([target_colorspace, view, display]):
diff --git a/openpype/plugins/publish/extract_thumbnail.py b/openpype/plugins/publish/extract_thumbnail.py
index 0ddbb3f40b..5b75a374ba 100644
--- a/openpype/plugins/publish/extract_thumbnail.py
+++ b/openpype/plugins/publish/extract_thumbnail.py
@@ -5,12 +5,12 @@ import tempfile
 import pyblish.api
 from openpype.lib import (
     get_ffmpeg_tool_args,
-    get_oiio_tool_args,
     is_oiio_supported,
 
     run_subprocess,
     path_to_subprocess_arg,
 )
+from openpype.lib.transcoding import convert_colorspace
 
 
 class ExtractThumbnail(pyblish.api.InstancePlugin):
@@ -25,7 +25,7 @@ class ExtractThumbnail(pyblish.api.InstancePlugin):
     hosts = ["shell", "fusion", "resolve", "traypublisher", "substancepainter"]
     enabled = False
 
-    # presetable attribute
+    # presentable attribute
     ffmpeg_args = None
 
     def process(self, instance):
@@ -94,17 +94,26 @@ class ExtractThumbnail(pyblish.api.InstancePlugin):
             filename = os.path.splitext(input_file)[0]
             jpeg_file = filename + "_thumb.jpg"
             full_output_path = os.path.join(dst_staging, jpeg_file)
+            colorspace_data = repre.get("colorspaceData")
 
-            if oiio_supported:
-                self.log.debug("Trying to convert with OIIO")
+            # only use OIIO if it is supported and representation has
+            # colorspace data
+            if oiio_supported and colorspace_data:
+                self.log.debug(
+                    "Trying to convert with OIIO "
+                    "with colorspace data: {}".format(colorspace_data)
+                )
                 # If the input can read by OIIO then use OIIO method for
                 # conversion otherwise use ffmpeg
                 thumbnail_created = self.create_thumbnail_oiio(
-                    full_input_path, full_output_path
+                    full_input_path,
+                    full_output_path,
+                    colorspace_data
                 )
 
             # Try to use FFMPEG if OIIO is not supported or for cases when
-            #    oiiotool isn't available
+            #   oiiotool isn't available or representation is not having
+            #   colorspace data
             if not thumbnail_created:
                 if oiio_supported:
                     self.log.debug(
@@ -138,7 +147,7 @@ class ExtractThumbnail(pyblish.api.InstancePlugin):
             break
 
         if not thumbnail_created:
-            self.log.warning("Thumbanil has not been created.")
+            self.log.warning("Thumbnail has not been created.")
 
     def _is_review_instance(self, instance):
         # TODO: We should probably handle "not creating" of thumbnail
@@ -173,17 +182,40 @@ class ExtractThumbnail(pyblish.api.InstancePlugin):
             filtered_repres.append(repre)
         return filtered_repres
 
-    def create_thumbnail_oiio(self, src_path, dst_path):
-        self.log.debug("Extracting thumbnail with OIIO: {}".format(dst_path))
-        oiio_cmd = get_oiio_tool_args(
-            "oiiotool",
-            "-a", src_path,
-            "-o", dst_path
-        )
-        self.log.debug("running: {}".format(" ".join(oiio_cmd)))
+    def create_thumbnail_oiio(
+        self,
+        src_path,
+        dst_path,
+        colorspace_data,
+    ):
+        """Create thumbnail using OIIO tool oiiotool
+
+        Args:
+            src_path (str): path to source file
+            dst_path (str): path to destination file
+            colorspace_data (dict): colorspace data from representation
+                keys:
+                    colorspace (str)
+                    config (dict)
+                    display (Optional[str])
+                    view (Optional[str])
+
+        Returns:
+            str: path to created thumbnail
+        """
+        self.log.info("Extracting thumbnail {}".format(dst_path))
+
         try:
-            run_subprocess(oiio_cmd, logger=self.log)
-            return True
+            convert_colorspace(
+                src_path,
+                dst_path,
+                colorspace_data["config"]["path"],
+                colorspace_data["colorspace"],
+                display=colorspace_data.get("display"),
+                view=colorspace_data.get("view"),
+                additional_input_args=["-i:ch=R,G,B"],
+                logger=self.log,
+            )
         except Exception:
             self.log.warning(
                 "Failed to create thumbnail using oiiotool",
@@ -191,6 +223,8 @@ class ExtractThumbnail(pyblish.api.InstancePlugin):
             )
             return False
 
+        return dst_path
+
     def create_thumbnail_ffmpeg(self, src_path, dst_path):
         self.log.debug("Extracting thumbnail with FFMPEG: {}".format(dst_path))