A method and apparatus for video coding using motion-compensated partitioning is provided. Video coding using motion-compensated partitioning may include identifying a current block of a current frame of an input video stream, generating an encoded block by encoding the current block using motion-compensated partitioning, wherein encoding the current block using motion-compensated partitioning includes, generating coarse motion estimation information for the current block, partitioning the current block, generating fine motion estimation information for the current block, and transmitting or storing the encoded block.