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H.264 is the latest international video coding standard and it can achieve considerably higher coding efficiency versus previous standards This is accomplished by an enhanced exploitation of the spatiotemporal correlation, such as various macro-block modes, variable block sizes for motion compensation, multiple reference frames, quarter-pixel motion accuracy, and various predictive direction modes for intra prediction. However, although such new encoding technology is the main factor in improving the encoding efficiency, it is simultaneously a highly complex factor. Therefore, the H264 standard is used widely in real applications where the speed elevation of these technologies is essential. The proposed fast motion vector search technique supports the fastest compensation of the variable size block motion that is suitable for the motion vector conclusions which comprise a significant proportion of the encoding complexity in this paper. In addition, a fast-mode decision algorithm capable of deciding various encoding optimal values of H.264 is proposed. Because the proposed fast mode decision algorithm is capable of deciding the mode early, the method enables the omission of the computational procedure of rate-distortion cost and the efficient operation of the motion vector search technique. The results presented here confirmed the achievement of a very high efficiency while decreasing the required number of calculations without incurring any significant encoding damage, thereby improving the existing algorithm by using the information of the surrounding block.