The invention relates to a video encoding technique, in particular to the mark bit setting method of a video encoding motion estimation algorithm. Aiming at the high expense of the mark bit setting calculation of the video encoding motion estimation algorithm in the prior art, the invention discloses a mark bit setting method of the video encoding motion estimation algorithm. The technic proposalof the invention is that: firstly, an integer two-dimension array is allocated according to the searching range with one to one correspondence of elements and searching points and a count value for searching is set. Then before a first macroblock encoding in each video frame, all elements and the count value for searching of the two-dimension array is initialized into the same value. In each searching, firstly the counting value for searching is changed and then the value is compared with the corresponding value in the two-dimension array for the searching points reached by motional searching. If the two values are the same, the next candidate searching point is introduced; if not, the current searching point is searched and then the corresponding value in the two-dimension array for the current searching point is changed into the counting value for searching. The invention has the advantage of reducing computing cost.