Matching pursuit (MP) based video coder represents an active alternative to conventional block based DCT based architectures R Neff et al. (1997). In this paper we propose a generalized motion compensation method and an entropy coding method for MP based coder. Motion vectors are combined with the cut-off frequency level of loop filters applied to the reference frame. Exploiting the characteristics of MP atoms, the latter are efficiently coded by employing an adaptive grid size combined with context based adaptive arithmetic coder. Reordering of atoms in each grid is also applied. Simulation results show that our proposed method outperforms traditional fixed grid based approach.