This disclosure relates generally to method and system for live video streaming with integrated encoding and transmission semantics. The system receives a set of frames associated with a live video stream encoded to generate a set of data fragments using a reference encoder and a delta encoder. Transmitter unit of the live video streaming protocol transmits each packet of the set of full frames and the set of delta frames in sequence with a payload specific header based on a packet mode. Further, the receiver unit receives each packet of the full frames and each packet of the delta frames based on the packet mode to reconstruct an original sequence from the foreground pixels by estimating a total number of packets expected at each frame interval and loss incurred in each packet of the set of full frames and the set of delta frames.