In this paper, we describe the object-oriented motioncompensation technique using the hierarchical grid interpolation(HGI). By noting that the HGI does not exploit effetively the rate-distortion (R-D) trade-off inherent in the quadtree decomposition, we propose an objectoriented HGI technique employing the greedy method. In the proposed technique, input image is decomposed in a quadtree basis using the greedy method, yielding maximum split gain in the R-D sense. Then, the motion compensation is performed using the HGI technique. The performance of the proposed technique is examined in simulation, and it will be show that the proposed technique provides better performance than the conventional object-oriented motion compensation techniques.