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In this paper, we propose a new algorithm for occlusion handling for object tracking in the crowded video scenes. The algorithm exploits the properties of undecimated wavelet packet transform (UWPT) coefficients and texture analysis to track arbitrary objects. The algorithm is initialized by the user through specifying a region around the object of interest at the reference frame. Then, coefficients of the UWPT of the region construct a Feature Vector (FV) for every pixel in that region. Optimal search for the best match is then performed by using the generated FVs inside an adaptive search window. Adaptation of the search window is achieved by inter- frame texture analysis to find the direction and speed of the object motion. This temporal texture analysis also assists in tracking of the object under partial or short-term full occlusion. Experimental results show a good performance for occlusion handling for object tracking in crowded scenes, in particular crowds on stairs in airports or train stations.