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An effective error concealment (EC) scheme for H.264/AVC transmission over packet-loss networks is proposed in this paper. First, a lost macroblock (MB) is partitioned into adaptive block size based on motion analysis around the lost MB. Then, the motion vector (MV) of each partition in lost MB is recovered by an improved decoder motion vector estimation algorithm (DMVE). Finally, a modified overlapped block motion compensation method making use of the spatial smoothness property is utilized to reduce blocking artifacts caused by motion compensation with the recovered motion vector. Experimental results show that the proposed scheme outperforms other well-known methods in both PSNR and visual performance.