Abstract: Embodiments of the present invention may provide a method of forming an image by using block matching algorithm and motion compensating interpolation, said method comprising: a) receiving neighboring first and second frames, each frame being divided into a plurality of blocks; b) checking whether to form an interpolation frame to be inserted between the first and second frames based on a correlation between the first and second frames; c) if it is determined to form the interpolation frame, determining a first motion vector between each block in the interpolation frame and each block in the first frame, and determining a second motion vector between each of the blocks in the interpolation frame and each of the blocks in the second frame; d) determining a motion vector of each block in the interpolation frame based on the first and second motion vectors; e) reconstructing the interpolation frame by applying the motion vector of each block, wherein pixel values of the interpolation frame are determined based on