This monograph provides a deep insight in the concepts of Video codec for low bandwidth radio links. An overview of Video compression, Motion Estimation and Motion compensation has been provided in understandable form as flow chart. Experimental set up of CODEC comprises two FPGA boards acting as transceiver connected through Ethernet cable. This set up demonstrated the video transmission with the optimized intra and inter prediction stage developed in this research work. The obtained simulation results were used for functionality verification at different stages. Intra frame and Inter frame prediction explained with the respective MATLAB program. Motion Estimation is also explained with MATLAB program. Performance of the technique is further analyzed using graph. A special feature of this monograph lies in the MATLAB programs which can be implemented for video compression in video codec. These programs are tested and validated.