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A motion compensated de-interlacing method with adaptive global motion estimation and compensation is proposed to recover the defects of interlaced video sequence with camera panning, rotating or zooming. GME and GMC are used to recover the change of the whole picture due to camera motions. Two local motion compensated de-interlacing methods are proposed and applied to de-interlace the interlaced video sequences with or without global motion respectively. SAD checking and global/local motion comparator can be used as a block based mode decision system for intra/MC/GMC modes. The proposed algorithm could achieve higher image quality of interlaced video sequences than any other usual de-interlacing algorithm on progressive devices.