AbstractSince fractional pixel accuracy motion compensation precisely expresses the motion information, it is widely used for improving coding efficiency in the International Standard video coding methods for the MPEG and H.26x series. When the motion accuracy is ascertained more precisely, motion information becomes more exact, and consequently, prediction efficiency can be improved. The problem, however, is that the amount of bits for expressing large motion increases. Accordingly the adaptive interpolation filter (AIF) method, which changes the filter characteristics for half‐pixel positions on quarter‐pixel motion compensation, was proposed. This technique also changes the image at quarter‐pixel positions and makes the motion accuracy more precise. In conventional studies, the AIF method was used per frame or macroblock that was not the motion compensation block, because the overhead problem of filter indication has never been resolved. In this paper, we propose the 3D motion vector coding technique with the block‐based adaptive interpolation filter. This method integrates filter indication into motion vector coding and predicts the filter indication adaptively, so that it reduces the overhead of filter indications. In this method, the filter is changed per motion compensation block so that the prediction efficiency is improved per motion compensation block. We also demonstrate in simulations that this method achieves higher coding efficiency than the normal H.264 coding method. © 2004 Wiley Periodicals, Inc. Syst Comp Jpn, 35(14): 10–20, 2004; Published online in Wiley InterScience (www.interscience.wiley.com). DOI 10.1002/scj.20125