A video encoder may encode video data by adaptively selecting between one-eighth-pixel and one-quarter-pixel precision motion vectors, and signal the selected precision. In one example, an apparatus includes a video encoder to encode a block of video data using a one-eighth-pixel precision motion vector when use of the one-eighth-pixel precision motion vector is determined to be preferable for the block over a one-quarter-pixel precision motion vector, and to generate a signal value indicative of the use of the one-eighth-pixel precision motion vector for the block, and an output interface to output the encoded block and the signal value. A video decoder may be configured to receive the signal value and the encoded block, analyze the signal value to determine whether the block was encoded using one-eighth-pixel precision or one-quarter-pixel precision, and decode the block based on the determination.