A method of compensating for jitter in a packet stream is described. The method comprises placing undecoded frames extracted from packets in the packet stream into a jitter buffer while decoding frames from the jitter buffer and placing the decoded frames into a sample buffer at a rate determined using an average playout delay. The average playout delay is the running average of the playout delay calculated for each packet as each packet becomes available. The playout delay for each packet is the sum of a sample buffer delay and a jitter buffer delay. As each packet is received, the average playout delay is adjusted based on a comparison of the playout delay associated with the received packet to the current average playout delay.