diff --git a/tools/releasetools/ota_from_target_files.py b/tools/releasetools/ota_from_target_files.py
index 6446e1f..15ed35b 100755
--- a/tools/releasetools/ota_from_target_files.py
+++ b/tools/releasetools/ota_from_target_files.py
@@ -1121,17 +1121,18 @@
   additional_args += ["--enable_lz4diff=" +
                       str(OPTIONS.enable_lz4diff).lower()]
 
+  env_override = {}
   if source_file and OPTIONS.enable_lz4diff:
-    input_tmp = common.UnzipTemp(source_file, ["META/liblz4.so"])
-    liblz4_path = os.path.join(input_tmp, "META", "liblz4.so")
+    liblz4_path = os.path.join(source_file, "META", "liblz4.so")
     assert os.path.exists(
         liblz4_path), "liblz4.so not found in META/ dir of target file {}".format(liblz4_path)
     logger.info("Enabling lz4diff %s", liblz4_path)
-    additional_args += ["--liblz4_path", liblz4_path]
     erofs_compression_param = OPTIONS.target_info_dict.get(
         "erofs_default_compressor")
     assert erofs_compression_param is not None, "'erofs_default_compressor' not found in META/misc_info.txt of target build. This is required to enable lz4diff."
     additional_args += ["--erofs_compression_param", erofs_compression_param]
+    env_override["LD_PRELOAD"] = liblz4_path + \
+        ":" + os.environ.get("LD_PRELOAD", "")
 
   if OPTIONS.disable_vabc:
     additional_args += ["--disable_vabc=true"]
@@ -1141,10 +1142,15 @@
     additional_args += ["--compressor_types", OPTIONS.compressor_types]
   additional_args += ["--max_timestamp", max_timestamp]
 
+  env = dict(os.environ)
+  if env_override:
+    logger.info("Using environment variables %s", env_override)
+    env.update(env_override)
   payload.Generate(
       target_file,
       source_file,
-      additional_args + partition_timestamps_flags
+      additional_args + partition_timestamps_flags,
+      env=env
   )
 
   # Sign the payload.
diff --git a/tools/releasetools/ota_utils.py b/tools/releasetools/ota_utils.py
index 81b53dc..852d62b 100644
--- a/tools/releasetools/ota_utils.py
+++ b/tools/releasetools/ota_utils.py
@@ -845,16 +845,16 @@
     self.is_partial_update = is_partial_update
     self.spl_downgrade = spl_downgrade
 
-  def _Run(self, cmd):  # pylint: disable=no-self-use
+  def _Run(self, cmd, **kwargs):  # pylint: disable=no-self-use
     # Don't pipe (buffer) the output if verbose is set. Let
     # brillo_update_payload write to stdout/stderr directly, so its progress can
     # be monitored.
     if OPTIONS.verbose:
-      common.RunAndCheckOutput(cmd, stdout=None, stderr=None)
+      common.RunAndCheckOutput(cmd, stdout=None, stderr=None, **kwargs)
     else:
-      common.RunAndCheckOutput(cmd)
+      common.RunAndCheckOutput(cmd, **kwargs)
 
-  def Generate(self, target_file, source_file=None, additional_args=None):
+  def Generate(self, target_file, source_file=None, additional_args=None, **kwargs):
     """Generates a payload from the given target-files zip(s).
 
     Args:
@@ -863,6 +863,7 @@
           generating a full OTA.
       additional_args: A list of additional args that should be passed to
           delta_generator binary; or None.
+      kwargs: Any additional args to pass to subprocess.Popen
     """
     if additional_args is None:
       additional_args = []
@@ -918,7 +919,7 @@
     if self.is_partial_update:
       cmd.extend(["--is_partial_update=true"])
     cmd.extend(additional_args)
-    self._Run(cmd)
+    self._Run(cmd, **kwargs)
 
     self.payload_file = payload_file
     self.payload_properties = None