Matching pursuit (MP) based video coder represents an effective alternative to conventional block based DCT based architectures[I]. In this paper we propose a generalized motion compensation method and an entropy coding method for MP based coder. Motion vectors are combined with the cut-off frequency level of loop filters applied to the reference frame. Exploiting the characteristics of MP atoms, the latter are efticiently coded by employing an adaptive grid size combined with context based adaptive arithmetic coder. Re-ordering of atoms in each grid is also applied. Simulation results show that our proposed method outperforms traditional fixed grid based approach.