diff --git a/pkg/api/http/controller/groups/plugins.py b/pkg/api/http/controller/groups/plugins.py
index 28a3c44c..4966553b 100644
--- a/pkg/api/http/controller/groups/plugins.py
+++ b/pkg/api/http/controller/groups/plugins.py
@@ -128,10 +128,8 @@ class PluginsRouterGroup(group.RouterGroup):
 
             file_bytes = file.read()
 
-            file_base64 = base64.b64encode(file_bytes).decode('utf-8')
-
             data = {
-                'plugin_file': file_base64,
+                'plugin_file': file_bytes,
             }
 
             ctx = taskmgr.TaskContext.new()
diff --git a/pkg/plugin/connector.py b/pkg/plugin/connector.py
index 08a0785a..4d441583 100644
--- a/pkg/plugin/connector.py
+++ b/pkg/plugin/connector.py
@@ -109,6 +109,14 @@ class PluginRuntimeConnector:
         install_info: dict[str, Any],
         task_context: taskmgr.TaskContext | None = None,
     ):
+        if install_source == PluginInstallSource.LOCAL:
+            # transfer file before install
+            file_bytes = install_info['plugin_file']
+            file_key = await self.handler.send_file(file_bytes, 'lbpkg')
+            install_info['plugin_file_key'] = file_key
+            del install_info['plugin_file']
+            self.ap.logger.info(f'Transfered file {file_key} to plugin runtime')
+
         async for ret in self.handler.install_plugin(install_source.value, install_info):
             current_action = ret.get('current_action', None)
             if current_action is not None:
diff --git a/pkg/plugin/handler.py b/pkg/plugin/handler.py
index ce3bd6d4..5effee4c 100644
--- a/pkg/plugin/handler.py
+++ b/pkg/plugin/handler.py
@@ -560,7 +560,18 @@ class RuntimeConnectionHandler(handler.Handler):
                 'plugin_name': plugin_name,
             },
         )
-        return result
+
+        plugin_icon_file_key = result['plugin_icon_file_key']
+        mime_type = result['mime_type']
+
+        plugin_icon_bytes = await self.read_local_file(plugin_icon_file_key)
+
+        await self.delete_local_file(plugin_icon_file_key)
+
+        return {
+            'plugin_icon_base64': base64.b64encode(plugin_icon_bytes).decode('utf-8'),
+            'mime_type': mime_type,
+        }
 
     async def call_tool(self, tool_name: str, parameters: dict[str, Any]) -> dict[str, Any]:
         """Call tool"""