We propose a two-step error concealment method based on an error resilient three-dimensional discrete wavelet transform (3-D DWT) video encoding scheme. The proposed scheme consists of an error-resilient encoder duplicating the lowest sub-band bit-streams for dispersive grouped frames and an error concealment decoder. The error concealment method of this decoder is decomposed of two steps, the first step is replacement of erroneous coefficients in the low frequency sub-band by the duplicated coefficients, and the second step is interpolation of the missing wavelet coefficients by minimum mean square error (MMSE) estimation. The proposed scheme can achieve robust transmission over unreliable channels. Experimental results provide performance comparisons in terms of peak signal-to-noise ratio (PSNR) and visual quality under different packet loss conditions.