An image transmission system and method for transmitting an image, which has been divided into a plurality of pixel blocks, comprising a transmitting device and a receiving device. The transmitting device includes an information source encoder for dividing an image to be transmitted into a plurality of pixel blocks in an original arrangement, a pixel block dispersing unit for arranging the pixel blocks of the image according to predetermined rules, and a modulator for successively modulating and transmitting the rearranged blocks. The receiving device includes a demodulator for successively receiving and demodulating the blocks transmitted from the modulator, a pixel block rearranging unit for rearranging the received blocks of the image back into the original arrangement according to the predetermined rules, an information source decoder for decoding the pixel blocks, and a pixel data interpolator for interpolating any block which has suffered a transmission error based on blocks adjacent thereto in the original arrangement. Since any block which has suffered a transmission error is interpolated using normal blocks, the original image can be reproduced with high quality by the receiving device.