This paper presents a novel face-assisted video coding scheme to enhance the visual quality of the face regions in video telephony applications. A skin-color based face detection and tracking scheme is proposed to locate the face regions in real-time. After classifying the macroblocks into the face and non-face regions, we present a dynamic distortion weighting adjustment (DDWA) scheme to drop the static non-face macroblocks, and the saved bits are used to compensate the face region by adjusting the distortion weighting of the face macroblocks. The quality of face regions will thus be enhanced. Moreover, the computation originally required for the skipped macroblocks can also be saved. The experimental results show that the proposed method can significantly improve the PSNR and the subjective quality of face regions, while the degradation introduced on the non-face areas is relatively insensitive to human perception. The proposed algorithm is fully compatible with H.263 standard, and ...