The proposed Dynamic Motion Vector Analysis method applies to the motion compensation module of a video decoder system. The method analyzes the motion-vectors of a given region of picture frame and outputs a set of regions to be fetched from the reference frames stored in the external memory. The size and number of regions are decided by a hierarchical method that uses a set of user-defined input thresholds. Pre-processing of the motion vectors associated with the given region allows the method to handle reference data to be fetched from multiple reference frames in the same framework. A complementary dynamic batch (region of operation) size strategy that works along with MV-analysis is also proposed to help utilize the on-chip memory resources more efficiently.