A method for temporal interpolation of an image sequence using object-based image analysis is disclosed. The method comprises the steps of image segmentation for partitioning a known image into objects, motion estimation, object-based motion field processing, determination of object depth order, detection of covered areas and newly exposed areas, adaptive interpolation using motion projection, and graceful degradation for alleviating remaining visible artifacts. The method produces interpolated images of high quality in real time for every type of image areas including fast moving objects, covered areas, and newly exposed areas.