diff --git a/app/models/concerns/orchestration/tftp.rb b/app/models/concerns/orchestration/tftp.rb
index 2665cab80f53..46f533b257bf 100644
--- a/app/models/concerns/orchestration/tftp.rb
+++ b/app/models/concerns/orchestration/tftp.rb
@@ -111,13 +111,31 @@ def setTFTPBootFiles
     logger.info "Fetching required TFTP boot files for #{host.name}"
     valid = []
 
-    host.operatingsystem.pxe_files(host.medium_provider).each do |bootfile_info|
-      bootfile_info.each do |prefix, path|
-        valid << each_unique_feasible_tftp_proxy do |proxy|
+    # Check host.medium_provider path for iso image
+    prefetch_image = host.medium_uri.to_s.end_with?(".iso")
+
+    valid << each_unique_feasible_tftp_proxy do |proxy|
+      bootfiles = host.operatingsystem.pxe_files(host.medium_provider)
+      # fetch iso image if given
+      if prefetch_image
+        raw_files = []
+        bootfiles.each {|info| raw_files.append(info.values.first.delete_prefix(host.medium_uri.to_s))}
+        proxy.fetch_boot_image(:url => host.medium_uri.to_s, :path => host.operatingsystem.bootimage_path(host.medium_provider, host, include_suffix=true, include_base_path=false), :files => raw_files)
+      end
+
+      host.operatingsystem.pxe_files(host.medium_provider).each do |bootfile_info|
+        bootfile_info.each do |prefix, path|
+          # change path in case of iso download
+          if prefetch_image
+            proxy_path = host.operatingsystem.bootimage_path(host.medium_provider, host, false)
+            proxy_url = "http://#{URI.parse(proxy.url).host}/#{proxy_path}"
+            path.sub!(host.medium_uri.to_s, proxy_url)
+          end
           proxy.fetch_boot_file(:prefix => prefix.to_s, :path => path)
         end
       end
     end
+
     failure _("Failed to fetch boot files") unless valid.all?
     valid.all?
   end
diff --git a/app/models/operatingsystem.rb b/app/models/operatingsystem.rb
index 2af7ebea17ba..434e55ed45fa 100644
--- a/app/models/operatingsystem.rb
+++ b/app/models/operatingsystem.rb
@@ -92,7 +92,7 @@ class Operatingsystem < ApplicationRecord
     property :password_hash, String, desc: 'Encrypted hash of the operating system password'
   end
   class Jail < Safemode::Jail
-    allow :id, :name, :major, :minor, :family, :to_s, :==, :release, :release_name, :kernel, :initrd, :pxe_type, :boot_files_uri, :password_hash, :mediumpath, :bootfile
+    allow :id, :name, :major, :minor, :family, :to_s, :==, :release, :release_name, :kernel, :initrd, :pxe_type, :boot_files_uri, :password_hash, :mediumpath, :bootfile, :bootimage_path
   end
 
   def self.title_name
@@ -236,6 +236,27 @@ def bootfile(medium_provider, type)
     pxe_prefix(medium_provider) + "-" + pxe_file_names(medium_provider)[type.to_sym]
   end
 
+  apipie :method, 'Returns path to boot image based on given medium provider and (optional) host' do
+    required :medium_provider, 'MediumProviders::Provider', 'Medium provider responsible to provide location of installation medium for a given entity (host or host group)'
+    optional :host, 'Host::Managed', 'A specific host which can set custom a boot image path'
+    returns String, 'Path to the boot image file'
+  end
+  def bootimage_path(medium_provider, host = nil, include_suffix = true, include_base_path = true)
+    unless medium_provider.is_a? MediumProviders::Provider
+      raise Foreman::Exception.new(N_('Please provide a medium provider. It can be found as @medium_provider in templates, or Foreman::Plugin.medium_providers_registry.find_provider(host)'))
+    end
+    include_base_path ? base_path = "/pub/installation_media/" : base_path = ""
+    include_suffix ? suffix = ".iso" : suffix = ""
+    unless host.nil?
+      if host.host_params.has_key? "custom_bootimage_path"
+        base_path = host.host_params["custom_bootimage_path"]
+        base_path += "/" unless base_path[-1] == '/'
+      end
+    end
+
+    "#{base_path}#{name.downcase}/#{medium_provider.unique_id}#{suffix}"
+  end
+
   # Does this OS family support a build variant that is constructed from a prebuilt archive
   def supports_image
     false
diff --git a/app/services/foreman/renderer/configuration.rb b/app/services/foreman/renderer/configuration.rb
index 5f7819b3fa3e..7a487e3179b2 100644
--- a/app/services/foreman/renderer/configuration.rb
+++ b/app/services/foreman/renderer/configuration.rb
@@ -99,6 +99,7 @@ class Configuration
         :static,
         :template_name,
         :xen,
+        :bootimage_path,
       ]
 
       DEFAULT_ALLOWED_GLOBAL_SETTINGS = [
diff --git a/app/services/foreman/renderer/scope/variables/base.rb b/app/services/foreman/renderer/scope/variables/base.rb
index f211eb177ade..93e8a49e72eb 100644
--- a/app/services/foreman/renderer/scope/variables/base.rb
+++ b/app/services/foreman/renderer/scope/variables/base.rb
@@ -12,7 +12,7 @@ def self.included(base)
           delegate :diskLayout, :disk_layout_source, :medium, :architecture, :ptable, :use_image, :arch,
             :image_file, :default_image_file, to: :host, allow_nil: true
           delegate :mediumpath, :additional_media, :supports_image, :major, :preseed_path, :preseed_server,
-            :xen, :kernel, :initrd, to: :operatingsystem, allow_nil: true
+            :xen, :kernel, :initrd, :bootimage_path, to: :operatingsystem, allow_nil: true
           delegate :name, to: :architecture, allow_nil: true, prefix: true
           delegate :content, to: :disk_layout_source, allow_nil: true, prefix: true
 
@@ -97,6 +97,7 @@ def xenserver_attributes
 
           def pxe_config
             return unless @medium_provider
+            @bootimage_path = bootimage_path(@medium_provider, host)
             @kernel = kernel(@medium_provider)
             @initrd = initrd(@medium_provider)
             @kernel_uri, @initrd_uri = operatingsystem.boot_files_uri(@medium_provider)
diff --git a/app/services/proxy_api/resource.rb b/app/services/proxy_api/resource.rb
index 088853400eb3..fed7adc6333d 100644
--- a/app/services/proxy_api/resource.rb
+++ b/app/services/proxy_api/resource.rb
@@ -28,8 +28,12 @@ def initialize(args)
 
     attr_reader :connect_params
 
-    def resource
+    def resource(timeout = nil)
       # Required in order to ability to mock the resource
+      unless timeout.nil?
+        custom_params = connect_params.merge(timeout: timeout)
+        return RestClient::Resource.new(url, custom_params)
+      end
       @resource ||= RestClient::Resource.new(url, connect_params)
     end
 
@@ -65,7 +69,7 @@ def parse(response)
     end
 
     # Perform GET operation on the supplied path
-    def get(path = nil, payload = {})
+    def get(path = nil, payload = {}, timeout = nil)
       query = payload.delete(:query)
       Foreman::Deprecation.deprecation_warning("3.3", "passing additional headers to ProxyApi resource GET action") unless payload.empty?
       final_uri = path || ""
@@ -78,39 +82,39 @@ def get(path = nil, payload = {})
         telemetry_duration_histogram(:proxy_api_duration, :ms, method: 'get') do
           # This ensures that an extra "/" is not generated
           if path
-            resource[final_uri].get payload
+            resource(timeout)[final_uri].get payload
           else
-            resource.get payload
+            resource(timeout).get payload
           end
         end
       end
     end
 
     # Perform POST operation with the supplied payload on the supplied path
-    def post(payload, path = "")
+    def post(payload, path = "", timeout = nil)
       logger.debug("POST request payload: #{payload}")
       with_logger do
         telemetry_duration_histogram(:proxy_api_duration, :ms, method: 'post') do
-          resource[path].post payload
+          resource(timeout)[path].post payload
         end
       end
     end
 
     # Perform PUT operation with the supplied payload on the supplied path
-    def put(payload, path = "")
+    def put(payload, path = "", timeout = nil)
       logger.debug("PUT request payload: #{payload}")
       with_logger do
         telemetry_duration_histogram(:proxy_api_duration, :ms, method: 'put') do
-          resource[path].put payload
+          resource(timeout)[path].put payload
         end
       end
     end
 
     # Perform DELETE operation on the supplied path
-    def delete(path)
+    def delete(path, timeout = nil)
       with_logger do
         telemetry_duration_histogram(:proxy_api_duration, :ms, method: 'delete') do
-          resource[path].delete
+          resource(timeout)[path].delete
         end
       end
     end
diff --git a/app/services/proxy_api/tftp.rb b/app/services/proxy_api/tftp.rb
index dc4f0582ca7d..66b618d7cbe4 100644
--- a/app/services/proxy_api/tftp.rb
+++ b/app/services/proxy_api/tftp.rb
@@ -38,6 +38,17 @@ def fetch_boot_file(args)
       raise ProxyException.new(url, e, N_("Unable to fetch TFTP boot file"))
     end
 
+    # Requests that the proxy downloads and extracts an image from the media's source
+    # [+args+] : Hash containing
+    #   :path   => String containing the location on the smart proxy to store the image
+    #   :url    => String containing the URL of the image to download
+    # Returns    : Boolean status
+    def fetch_boot_image(args)
+      parse(post(args, "fetch_boot_image", 180)) # Set 180 seconds timeout for large image download
+    rescue => e
+      raise ProxyException.new(url, e, N_("Unable to fetch and extract TFTP boot image"))
+    end
+
     # returns the TFTP boot server for this proxy
     def bootServer
       if (response = parse(get("serverName"))) && response["serverName"].present?
diff --git a/app/views/unattended/provisioning_templates/PXELinux/preseed_default_pxelinux_autoinstall.erb b/app/views/unattended/provisioning_templates/PXELinux/preseed_default_pxelinux_autoinstall.erb
index fa044ccec079..98b5d03dba54 100644
--- a/app/views/unattended/provisioning_templates/PXELinux/preseed_default_pxelinux_autoinstall.erb
+++ b/app/views/unattended/provisioning_templates/PXELinux/preseed_default_pxelinux_autoinstall.erb
@@ -34,7 +34,6 @@ test_on:
   end
   options << "locale=#{host_param('lang') || 'en_US'}"
   options = options.join(' ')
-  image_path = @preseed_path.sub(/\/?$/, '.iso')
 -%>
 #
 # WARNING
@@ -47,6 +46,6 @@ DEFAULT linux cloud-init autoinstall
 LABEL linux cloud-init autoinstall
     KERNEL <%= @kernel %>
     INITRD <%= @initrd %>
-    APPEND ip=dhcp url=http://<%= @preseed_server %><%= image_path %> autoinstall ds=nocloud-net;s=http://<%= foreman_request_addr %>/userdata/ root=/dev/ram0 ramdisk_size=1500000 fsck.mode=skip
+    APPEND ip=dhcp url=http://<%= foreman_request_addr.split(':').first %><%= @bootimage_path %> autoinstall ds=nocloud-net;s=http://<%= foreman_request_addr %>/userdata/ root=/dev/ram0 ramdisk_size=1500000 fsck.mode=skip
 
 <%= snippet_if_exists(template_name + " custom menu") %>