Abstract: In order to improve the traditional scalable video coding performance, the lifting wavelet is used in MCTF （Motion Compensated Temporal Filtering). The 5/3 lifting wavelet is carried on the temporal filter. Different motionhandled modes are adopted to deal with pixels with different connected states, and according to motion compensation effect the progression of temporal domain decomposition is autoadapted. The experimental results show that the algorithm achieves a rate of scalability,and the PSNR is 1~2 dB better than MPEG4（Moving Pictures Expert Group4） and 3DWT（3 Dimensions Wavlet Transformation） with the same compensation rate, and effectively enhance the code performance.

Key words: motion compensated temporal filtering(MCTF), video compensation, scalable video coding, lifting wavelet