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This paper concerns the issue of side information generation for distributed video coding (DVC). A new side information construction algorithm based on block interpolation is proposed. In this method, we firstly perform block classification to obtain the parameters of the motion estimation, avoiding the full search. Then forward and backward motion estimation is executed to find an initial motion vector field, which is further refined by two smoothing filters, namely, vector median filter (VMF) and weighted vector median filter (WVMF). Finally overlapped block motion compensation and interpolation selection are adopted to improve the construction quality of the side information. Experimental results show that in comparison with the motion compensation time interpolation (MCTI) and motion field interpolation (MFI) methods, the proposed scheme can obtain better effectiveness in aspect of PSNR performance and perceptual quality.