In the latest video coding standard H.264, intra frame prediction is employed to reduce the blocks’ spatial correlation. In this paper, a new algorithm is proposed to improve the performance of intra prediction of H.264/AVC. It changes mode 2 of H.264’s standard prediction methods into a BMA (block-matching algorithm)-DC hydrid mode. Experiment results show that with the proposed algorithm, significant improvement of coding performance can be gained compared to the performance of H.264 algorithm.