In this paper, we propose a dynamic bandwidth allocation scheme for the transmission of VBR video source through ATM based BISDN. In order to efficiently evaluate the required bandwidth, the characteristics of the VBR video sources generated by the MPEG coder are analyzed with variations in the number of GOP and quantizer scale. The required bandwidth for VBR video source is estimated by a prediction algorithm using scene and frame correlations as well as the statistical properties of the VBR video source. Scene correlation represents a strong correlation among the adjacent slices in a frame, and frame correlation represents a strong correlation among the frames. The statistical properties based on the traffic parameters of video sources such as peak rate, average rate, and standard deviation of source are determined through simulation. The performance of the proposed bandwidth allocation scheme is evaluated in terms of the over-allocated bandwidth, bandwidth utilization, and cell loss rate with variations in the quantizer scale and the number of GOP. It is shown that the results of simulation based on the proposed scheme are superior to those of the conventional methods.