This paper proposes a novel spectral hole substitution technique for low bit-rate audio coding. The spectral holes frequently occurring in relatively weak energy bands due to zero bit quantization result in severe quality degradation, especially for harmonic signals such as speech vowels. The enhanced aacPlus (EAAC) audio codec artificially adjusts the minimum signal-to-mask ratio (SMR) to reduce the number of spectral holes, but it still produces noisy sound. The proposed method selectively predicts the spectral shapes of hole bands using either intra-band correlation, i.e. harmonically related coefficients nearby or inter-band correlation, i.e. previous frames. For the bands that have low prediction gain, only the energy term is quantized and spectral shapes are replaced by pseudo random values in the decoding stage. To minimize perceptual distortion caused by spectral mismatching, the criterion of the just noticeable level difference (JNLD) and spectral similarity between original and predicted shapes are adopted for quantizing the energy term. Simulation results show that the proposed method implemented into the EAAC baseline coder significantly improves speech quality at low bit-rates while keeping equivalent quality for mixed and music contents.