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The paper adopts the DM365 video processing chip to realize an embedded network video surveillance system, and selects highly efficient video coding standard - H.264 compression algorithm to enhance the efficiency of coding data. The video monitoring system software includes video monitoring server module and client-side monitoring module. The video surveillance server module running on DM365 platform captures video frame and encodes it using H.264 encoder, and writes the encoded frame to the hard disk and sends it to the client-side surveillance using the RTP/RTCP protocol. The client-side monitoring program running on the PC real-time controls and monitors the scene.