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An efficient stereo video coding algorithm based on frame skipping is proposed for real-time mobile applications in this work. Based on the binocular suppression theory, the proposed algorithm skips a selected set of frames to save the encoding complexity and the transmission bit rate. At the decoder side, we reconstruct those skipped frames faithfully using the advanced bilateral interpolation method. Extensive simulation results demonstrate that the proposed algorithm provides better PSNR performances than the conventional stereo coding algorithm, while achieving realtime encoding and decoding.