Block matching motion estimation is the most widely used method for motion compensated coding of image sequences. Based on a two dimensional systolic array, VLSI architecture and implementation of the full search block matching algorithm are described in this paper. The proposed architecture improves conventional array architecture by designing efficient processing elements that can control the data prodeuced by efficient search window division method. The advantages are that 1) it allows serial input to reduce pin counts for efficient composition of local memories but performs parallel processing. 2) It is flexible and can adjust to dimensional changes of search windows with simple control logic. 3) It has no idel time during the operation. 4) It can operate in real/time for low and main level in MPEG-2 standard. 5) It has modular and regular structure and thus is sutiable for VLSI implementation.