The invention provides a three-party video conference system and method. The three-party video conference system, according to the invention, uses a second terminal apparatus, which can transmit data in different protocols for receiving and transmitting the compressed digital signals transmitted from a first terminal apparatus and a third terminal apparatus. Therefore, even though the first terminal apparatus and the third terminal apparatus can not transmit compressed digital signals to each other with the same protocol, the user still can achieve three-party video conferencing communication with the three-party video conference system.