Abstract: Implementation efficient video decoder for decoding multiple bitstreams to provide picture-in-picture capability in a digital video display device is disclosed. The video decoder includes a full resolution video decoder and a reduced resolution video decoder. The reduced resolution decoder decodes and downsamples video images using the same video memory device used by the full resolution decoder. By using a sufficient amount of downsampling, the amount of memory required to implement the video frame memory and decoder buffer required by the reduced resolution video decoder is reduced to a point where the frame memory and decoder buffer can be implemented using excess memory which is left over from the implementation of the full resolution decoder frame memory and decoder buffer. Accordingly, the present invention avoids or reduces the need to provide additional memory for frame storage when implementing picture-in-picture capability in a digital video display device.