In this work, homomorphic image modeling is used to make the exhaustive block-matching algorithm (EBMA) more human vision system (HVS) aware, thus yielding visually pleasing sequences. Homomorphic signal processing is used to separate the luminous and the structural components of each frame; EBMA is then applied to both components to capture the luminous and the structural changes. The combination of these two techniques is utilized to simulate the structure preserving nature of HVS. Temporal irrelevancies are reduced by removing the excess motion fields from both components. The homomorphic EBMA (H-EBMA) processed sequences have superior visual quality despite mean PSNR values that are comparable to sequences produced by traditional EBMA.