diff --git a/client/ayon_core/lib/transcoding.py b/client/ayon_core/lib/transcoding.py
index 806d7481f2..41835fc8e4 100644
--- a/client/ayon_core/lib/transcoding.py
+++ b/client/ayon_core/lib/transcoding.py
@@ -1011,6 +1011,7 @@ def convert_colorspace(
     display=None,
     additional_command_args=None,
     frames=None,
+    frame_padding=None,
     parallel_frames=False,
     logger=None,
 ):
@@ -1020,7 +1021,7 @@ def convert_colorspace(
         input_path (str): Path that should be converted. It is expected that
             contains single file or image sequence of same type
             (sequence in format 'file.FRAMESTART-FRAMEEND#.ext', see oiio docs,
-            eg `big.1-3#.tif` or `big.%04d.ext` with `frames` argument)
+            eg `big.1-3#.tif` or `big.1-3%d.ext` with `frames` argument)
         output_path (str): Path to output filename.
             (must follow format of 'input_path', eg. single file or
              sequence in 'file.FRAMESTART-FRAMEEND#.ext', `output.1-3#.tif`)
@@ -1036,9 +1037,11 @@ def convert_colorspace(
             depth for .dpx)
         frames (Optional[str]): Complex frame range to process. This requires
             input path and output path to use frame token placeholder like
-            e.g. file.%04d.exr
+            `#` or `%d`, e.g. file.#.exr
         parallel_frames (bool): If True, process frames in parallel inside
             the `oiiotool` process. Only supported in OIIO 2.5.20.0+.
+        frame_padding (Optional[int]): Frame padding to use for the input and
+            output when using a sequence filepath.
         logger (logging.Logger): Logger used for logging.
     Raises:
         ValueError: if misconfigured
@@ -1066,6 +1069,12 @@ def convert_colorspace(
         oiio_cmd.extend([
             "--frames", frames,
         ])
+
+    if frame_padding:
+        oiio_cmd.extend([
+            "--framepadding", frame_padding,
+        ])
+
     if parallel_frames:
         oiio_cmd.extend([
             "--parallel-frames"
diff --git a/client/ayon_core/plugins/publish/extract_color_transcode.py b/client/ayon_core/plugins/publish/extract_color_transcode.py
index 8988db59ec..9d315052a2 100644
--- a/client/ayon_core/plugins/publish/extract_color_transcode.py
+++ b/client/ayon_core/plugins/publish/extract_color_transcode.py
@@ -162,15 +162,16 @@ class ExtractOIIOTranscode(publish.Extractor):
                     if isinstance(file_name, clique.Collection):
                         # Support sequences with holes by supplying
                         # dedicated `--frames` argument to `oiiotool`
-                        # Create `filename` string like "file.%04d.exr"
-                        file_name = file_name.format("{head}{padding}{tail}")
+                        # Create `filename` string like "file.#.exr"
                         # Create `frames` string like "1001-1002,1004,1010-1012
-                        frames: str = file_name.format("{ranges}").replace(
-                            " ", "")
+                        file_name = file_name.format("{head}#{tail}")
+                        frames = file_name.format("{ranges}").replace(" ", "")
+                        frame_padding = file_name.padding
                         parallel_frames = True
                     elif isinstance(file_name, str):
                         # Single file
                         frames = None
+                        frame_padding = None
                         parallel_frames = False
                     else:
                         raise TypeError(
@@ -194,6 +195,7 @@ class ExtractOIIOTranscode(publish.Extractor):
                         display,
                         additional_command_args,
                         frames=frames,
+                        frame_padding=frame_padding,
                         parallel_frames=parallel_frames,
                         logger=self.log
                     )
@@ -279,10 +281,7 @@ class ExtractOIIOTranscode(publish.Extractor):
         """Returns original individual filepaths or list of a single two-tuple
         representating sequence filename with its frames.
 
-        Uses clique to find frame sequence, in this case it merges all frames
-        into sequence format (`%04d`) together with all its frames to support
-        both regular sequences and sequences with holes.
-
+        Uses clique to find frame sequence, and return the collections instead.
         If sequence not detected in input filenames, it returns original list.
 
         Args: