In this paper, we propose an adaptive bandwidth allocation algorithm for the transmission of VBR video through ATM Networks. In order to evaluate the required bandwidth for the VBR video, the characteristics of the compressed VBR video generated by the two-layered coder are analyzed with variations in the number of GOP(N), quantizer scale(q), and the number of low-frequency DCT coefficients(.betha.). The two-layer coder which is used to separate from the number of DCT coefficients is designed to transmit the VBR video efficiently. The compressed data generated by the two-layer coder are splitted into the high priority and low priority cells. If congestion is occurred in ATM networks, the minimum image quality is maintained by the high priority cells. The required bandwidth for VBR video is estimated with a prediction algorithm using the scene anframe correlations as well as the statistical properties of the VBR video sources. Strong correlation among the adjacent slices in a frame represents by the scene correlation andstrong correlation among the frames is represented by the frame correlation. The performance of the bandwidth allocation scheme proposed is evaluated in terms of the bandwith utilization, cell loss rate, and SNR with variations in q, n, .betha.. Simulation rewsults shown that the proposed scheme is superior to the conventional methods.