The document presents a novel motion estimation (ME) engine designed for power-efficient real-time MPEG-4 video coding, which operates with only 3% of the computational power typically required. By utilizing adaptive algorithms that combine full search and three-step search methods, it aims to maintain visual quality while significantly reducing energy consumption. The ME engine, fabricated using TSMC's 0.18 μm technology, demonstrates its effectiveness with a power consumption of 2.88 mW at 4.16 MHz during QCIF video processing.