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Based on the strong correlation of adjacent luminance blocks, this paper proposes a video watermarking algorithm based on the correlation of adjacent luminance blocks in the MPEG-4 video coding standard bit-stream. In the algorithm, the watermark is embedded in the DCT coefficients of I frames and P frames. This algorithm adopts the re-embedding and optimal retrieving strategy to guarantee the synchronization between embedding and retrieving watermark, and improve the robustness of watermarking. Experimental results show that this algorithm has obvious low complexity, high watermark payload and the strong robustness against re-encoding, multiple re-encoding and deleting.