Predictive fast Motion Estimation (ME) algorithms have been widely used in video CODECs due to their performance efficiency and low computational complexity. In this thesis, a new block-based fast motion estimation technique named Dynamic Predictive Search Algorithm (DPSA) is developed, which can be considered in predictive zonal search category.The proposed approach is based on the observation that temporally and spatially adjacent macro-blocks are not just statically correlated, but also dynamic alterations in their motion content are highly coherent. DPSA introduces a new set of six candidate predicted motion vectors. For early termination criteria, DPSA modifies termination procedure of already existing EPZS algorithm.Performance of this newly proposed algorithm has been compared to four other state-of-the-art algorithms implemented on JVT, H.264 standard software platform.Experimental results have proven that DPSA accomplishes up to 38% compression ratio enhancement achieved by a process with more 14.75% less computational complexity and up to0.47 dB higher PSNR values over the EPZS. It also manages to have up to 13% speed up over EPZS algorithm.Because of its simplicity and low computational complexity DPSA is energy efficient for portable video processing in computation- or power-constrained applications and easy to be implemented on both FPGA- and Microcontroller-based embedded systems. Also, higher compression ratio makes DPSA more compatible with limited capacity storage media, and limited band-width transmission networks.