In motion pictures there is a certain amount of redundancy between consecutive frames. These redundancies can be exploited by using interframe prediction techniques. To further enhance the efficiency of interframe prediction, motion estimation and compensation, various motion compensation techniques can be used. There are two distinct techniques for motion estimation block matching and pel-recursive block matching has been widely used as it produces a better signal-to-noise ratio or a lower bit rate for transmission than the pel-recursive method. In this thesis, various pel-recursive motion estimation techniques such as steepest descent gradient algorithm have been considered and simulated.