Nowadays, Video Compression has gaining important because of its application in different field like internet. So, there is different algorithm used to achieve the compression of Video. Video Compression algorithms combine Spatial image compression and Temporal motion compression. The sequence of frames contains Spatial and Temporal redundancies that Video Compression algorithms attempt to eliminate or code in smaller size. In this paper, We present a design of Binary motion vector technique with Pruning Discrete Wavelet Transform for the compression of AVI video.Here, Binary motion vector technique used for searching the Best matching block.This technique requires less candidates block than other motion vector technique.Pruning based DWT uses thresholding which will enhance the compression ratio with desirable Peak Signal to Noise ratio .This algorithm will be going to simulate on XilinxISE13.1 and implement on SPARTEN3 FPGA.