An MPEG-4 system with error concealment is provided for video service under the network with packet loss. The MPEG-4 system includes an encoder and a decoder. The encoder uses an intra-refreshment technique is used to make coded bitstream more robust against noise in order to stop error propagation. The rate-distortion optimization criterion is also introduced to adaptively update in synchronization with intra-coded blocks adaptively based on the true network condition with minimal overhead. The Lagrange multiplier is modified to achieve the best rate-distortion balance. In addition, a decoder loop is used in the encoder and is synchronized with the true decoder to achieve the best performance and avoid mismatch with the decoder used in the MPEG-4 system. The decoder is able to achieve resilient decoding from any kind of noise and enhance the reconstructed image quality with spatial and temporal hybrid concealment method. The result shows that a 3.65-9.71 dB further improvement on peak-signal-to-noise-ratio (PSNR) can be achieved in comparison with the existing methods that adopt spatial copy and zero motion concealment in decoding.