Abstract: Distributed video coding (DVC) is a new video coding modality based on two major information theory results: Slepian-Wolf Theorem and Wyner-Ziv Theorem. It allows to exploit the statistical correlation of sources at the decoder. In another word, DVC enables to shift the work load from the encoder to the decoder and in theory the shift of work load should not compromise the coding efficiency. Recently, more attention has been drawn to the field of DVC, mainly due to the booming markets for personal wireless communication devices. In this Thesis, an improved distributed video coding solution has been presented. The novel techniques proposed in this Thesis include: (1) the new side information estimation tools based on Kalman filtering and optimal smoothing. (2) and the employment of LDPC codes for distributed video coding applications. The performance evaluations show that the proposed codec is superior to the existing distributed video coding solutions.