Abstract - Multihypothesis motion-compensated prediction (MHMCP) approach has shown significant gain in terms of coding efficiency both in theory and practice. However, the fact that it also enhances the error resilience of a codec has not been fully realized. This paper analyzes the error resilience gain of MHMCP. Models for the decoder distortion induced by transmission errors and the ratedistortion function of the encoder in a codec using MHMCP are presented and their accuracy is validated by simulation studies. Using these models, we show how to design the multihypothesis predictor to jointly consider the coding gain and the error resilience gain for given channel error characteristics.