Block-based interframe interpolation algorithms cause severe block effect because the algorithm interpolates the skipped frame by using block based motion vector. Therefore, in this paper, we propose an algorithm that reduces the block effect in the interpolated frames. First, we propose an algorithm that obtains backward motion vector by using forward motion vector received from the transmitter. In order to predict well covered and uncovered region, backward motion vector is needed as well as forward motion vector. Second, we propose the algorithm which segments the motion boundary blocks into regions and obtains the motion vector of each region from candidates that consist of the motion vectors of neighbor blocks. This algorithm makes it possible that the moving object and the background, in spite of being in the same block, have different motion vectors from each other so that the block effect can be reduced. According to the results of simulation, the proposed algorithm is superior to conventional algorithm in subjective quality a swell as in objective quality.