A system and method for predicting an enhancement layer macroblock. A base layer frame is divided into intra-coded and inter-coded regions. If any portion of the enhancement layer macroblock is covered by both an intra-coded base layer macroblock and an inter-coded base layer macroblock, predictions utilizing the intra-coded and inter-coded macroblocks are established independently to generate at least two prediction values. The at least two prediction values are then combined to give a prediction from which the enhancement layer block is coded. Various embodiments serve to smooth the boundary effect between intra-coded regions and inter-coded regions inside the inter-layer prediction for extended spatial scalability.