In this paper, we describe MPEGTool, an X window based tool which can be used to generate an MPEG2 encoded bit stream for video sequences and to study the statistical properties of the encoded data. It is a very versatile tool that was designed to study the characteristics of variable bit rate video sources for transmission over ATM3 based BISDN4 . The tool, which has a window based graphical user interface, allows a user to specify several of the MPEG parameters such as the intraframe to interframe ratio, and the quantizer scale. The tool also includes a statistical package which allows the user to plot graphs of various statistics including bit distributions, ATM cell distributions, time series, autocorrelation functions and cell interarrival times.