To satisfy the requirements of high quality and low bit stream video for real time applications, video compression techniques are used. The most powerful video formats for the video codec are Video Coding Experts Group (VCEG) and ISO/IEC JTC1 Moving Picture Experts Group (MPEG). It is frequently used in internet streaming sources i.e. from media servers to end users. This paper focuses on streaming Video using Gstreamer. The video is captured using a web camera interfaced to PC, encoded using x264 and the video is streamed through Gstreamer and results a very good compression ratio.