A video device may generate an enhanced inter-layer reference (E-ILR) picture io assist in predicting an enhancement layer picture of a. scalable bitstream. An E-ILR picture may include one or more E-ILR blocks. An E-ILR block may be generated using a differential method, a residual method, a bi-prediction method, and/or a uni-prediction method. The video device may determine a first time instance. The video device may subtract a block of a first base layer picture characterized by the first time instance from a block of an enhancement layer picture characterized by the first time instance to generate a differential block characterized by the first time instance. The video device may perform motion compensation on the differential block and add the motion compensated differential picture to a block of the second base layer picture characterized by the second time instance to generate an E-ILR. block.