In this paper. we propose a new video coding scheme with multi-resolution motion compensation and residual quantization. The main functional blocks of the proposed scheme include multi-level wavelet decomposition. motion estimation and motion compensation. raster scanning within each subband. formation of block trees and blocking partitioning. and adaptive arithmetic coding. Although the proposed ceding scheme is simple and requires low computational complexity, it produces bitstreams tilth good features. such as the embedded structure and SNR scalability. Experimental results demonstrate that the proposed coding scheme is quote competitive to and often outperforms other wavelet-based video coding schemes in the literature.