— This paper presents a novel 3-D direction aligned wavelet transform for scalable video coding. A new generalized 3D directional threading technique is seamlessly incorporated into 3-D weighted adaptive lifting (WAL)-based wavelet transform to exploit the spatio-temporal correlation inside the video cube along the 3-D directional trajectory, leading to a new class of algorithm called 3-D direction aligned wavelet transform (DAWT). Experimental results show that the proposed 3-D WAL-based DAWT achieves better coding performance than the conventional 3-D discrete wavelet transform (3-D DWT).