The invention relates to a circuit and a method based on AVS motion compensation interpolation, which belong to the technical field of audio and video digital encoding and decoding; the circuit comprises integer-pixel memories I and II, bh and j pixel memories, a memory interface module, one-second and one-fourth pixel interpolation filters, a multiplexer and an adjusting amplitude limiter; the output ends of the circuit comprises integer-pixel memories I and II and the bh and j pixel memories are connected with the input end of the memory interface module; the output end of the memory interface module is respectively connected with the input ends of the one-second and one-fourth pixel interpolation filters; the output ends of the one-second and one-fourth pixel interpolation filters are respectively connected with the input end of the multiplexer; the output end of the one-second pixel interpolation filter is respectively connected with the input ends of the bh and j pixel memories; and the output end of the multiplexer is connected with the input end of the adjusting amplitude limiter, and interpolation results are output by the adjusting amplitude limiter. The invention carries out interpolation operation by the means of improving system parallelism, thereby effectively improving the system performance.