In this paper, we propose an error concealment technique using directional interpolation in block-based image compression. In the proposed method the edge direction is determined by finding the maximum correlation coefficients of boundary pixels of blocks neighboring the errored block in spatial domain. Then the errored block is interpolated linearly or bilinearly along the determined edge direction. The proposed method can conceal the block error, the macro block error, and the slice error adaptively. Also, the parameters for the directional interpolation are represented by closed forms. When applied to compressed images, the proposed method shows superior subjective and objective quality to conventional error concealment methods.