In this paper, a video coding method in wavelet transformed multi-resolution image using variable block sized motion estimation and multi-codebook is proposed. In the propoed method, the accuracy of motion estimation is increased by using variable block matching algorithm based on edge type of blocks which estimation is increased by using variable block matching algoritm based on edge type of blocks which is classified accoridng to the magnitude of wavelet coefficients in vertical subband and horizontal subband of the highest layer. Also, we increased the flexibility of bit allocation and decreased vector quantization error for motion compensated error transmission by using importance of each subband. Some experimental results confirm that he proposed mothod has fine reconstructed images without blocking effect at low bit rate, and especially reconstructs edges well to which human eyes are sensitive.