In this paper we present a face recognition and face detection algorithm in MPEG compressed video. The proposed method consists three stage of processing steps. The first step is to produce a spatially reduced DC image form MPEG compressed video for processing. And the second step is face detection on reduced DC image. Finally, the last step is face recognition on partially extracted compressed frames which contain the detected faces. The spatially reduced DC image is produced from two dimensional inverse DCT of the DC coefficient and the first two AC coefficients. The face detection is performed on DC image and face recognition is performed on one extracted frame per GOP by using the K-L transform. In order to evaluate the proposed method, we carried out experiments on video database. The experiment results show the proposed method is very efficient and helpful for target tasks.