A new MPEG compliant method for optimizing MPEG video coding is presented in this paper. The proposed technique uses a unique temporal image segmentation process (frame partitioning) to discriminate between visually noticeable and visually unnoticeable temporal changes in the uncompressed video stream. The results of this block-based separation are then used to limit the encoding to only those changes that are visible to the human eye. For the same picture quality, this method improves the efficiency of MPEG compression by up to 25%. In addition to the bit rate/quality improvement, if also provides a significant increase in the speed of the decoding processes.