Abstract-In this paper, an improved spatial scalable wavelet domain distributed video coding (DVC) scheme is proposed. In this scheme, we adaptively apply differential pulse code modulation (DPCM) Wyner-Ziv (WZ) coding and discrete cosine transform (DCT) based intra block coding to reducedresolution layer. Due to the low energy nature of high-pass subbands, WZ coding can be directly used. At decoder, in fullresolution layer WZ frame decoding, an efficient side information (SI) generation technique for low-pass subband is proposed, in which motion compensated interpolation (MCI) is performed on full-resolution signal. On the other hand, a refined technique is also employed to generate the SI for highpass subbands by taking advantage of inter-band correlation. Experimental results show that the proposed scheme provides an efficient wavelet domain DVC coding paradigm.