In this work, we develop a new motion-compe (MC) interpolation algorithm to enhance the temporal resolution of video sequences. First, we propose the bilateral motion estimation scheme to obtain the motion field of an interpolated frame without yielding the hole and overlapping problems. Then, we partition a frame into several object regions by clustering motion vectors. We apply the variable-size block MC (VS-BMC) algorithm to object boundaries in order to reconstruct edge information with a higher quality. Finally, we use the adaptive overlapped block MC (OBMC), which adjusts the coefficients of overlapped windows based on the reliabilities of neighboring motion vectors. The adaptive OBMC (AOBMC) can overcome the limitations of the conventional OBMC, such as over-smoothing and poor de-blocking. Experimental results show that the proposed algorithm provides a better image quality than conventional methods both objectively and subjectively