Abstract: An adaptive region-based, multi-scale, motion compensated video compression algorithm design for transmission over hostile communication channels. The algorithm is embodied in a video encoder that extracts spatial information from video frames to create video regions that are then decomposed into sub-bands of different perceptual importance before being compressed and transmitted independently. The system further uses unequal error protection, prioritized transmission and reconstruction to guarantee a minimum spatial and temporal resolution at the receiver. In particular, the region segmented frames bound both spatial and temporal error propagation within frames. A connection-level inter-region statistical multiplexing scheme is also employed to ensure optimal utilization of reserved transmission bandwidth.