: The recent explosion in digital video storage and delivery has presented strong motivation for high performance video compression solutions. An efficient video compression technique must preserve the trade-off between compression ratio and the quality of the video. The performance of existing image and video coding standards generally degrade at low bit-rates because of the underlying block based Discrete Cosine Transform (DCT) scheme. Over the past decade, the success of wavelets in solving many different problems has contributed to its unprecedented popularity. Due to implementation constraints scalar wavelets do not posses all the properties which are needed for better performance in compression. New class of wavelets called `Multiwavelets' which posses more than one scaling filters overcomes this problem. The objective of this paper is to develop an efficient compression scheme for the video stream by fast motion estimation algorithms up to half pixel accuracy as in newest i...