This paper presents a new motion compensated error coding method suitable for region based image coding system. Compared with block based conding, the region based coding improves subjective quality as it estimates and compensates 2D (or 3D) translantional, rotational, and scaling motion for each regions. although the region based coding has this advantage, its merit is reduced as bock-DCT (2D-DCT) is used to encode motion-compensated error. To overcome this problem, a new region adaptive motion compensated error coding technique which improver subjective and objective quality in the region boundary is proposed in this paper. In the proposed method, regions with large error are estimated using contour of the regions and contrast between the regions. The regions estiated as those with large error are coded by arbitrarily shaped image segment coding method. The mask information of the coded regions is not transmitted because it is estimated as the same algorithm in the encoder and the decoder. The proposed region adaptive motion conpensated error coding method improves about 0.5dB when it is compared with conventional block based method.