Scalable video coding schemes are intended to encode the signal once at available highest resolution, frame rate and quality, but enable decoding from partial streams depending on specific rate and resolution required by applications. The 3D discrete wavelet transform, due to its multiresolution nature, is highly suitable for the scalable video compression. The computational complexity of the architecture is one of the major bottleneck for realization of scalable video coding along with conventional scalability functions. This research focuses on reducing the computational complexity of motion estimation in motion compensated temporal filtering (MCTF) framework and also extends the system to support region of interest scalability.