— Stereo video systems require double bandwidth and more than twice computational complexity relative to monovideo systems. Thus, An efficient coding scheme is necessary for transmitting stereo video. We propose a novel stereo video coding system by exploiting joint prediction scheme which combines three prediction schemes to achieve high coding efficiency and low computational complexity. Joint block compensation improves the visual quality. Motion vector prediction and mode pre-decision utilize the features of stereo video to reduce the computational complexity with up to 8–9 times acceleration. Experiments show that the proposed joint prediction scheme is 2dB better than MPEG-4 TS and 3dB better than MPEG-4 SP.