The present invention relates to method and apparatus for video coding by ABT-based just noticeable difference (JND). For building the just noticeable difference model, spatial content information (SCI) is used to represent the spatial appearance similarity between one macroblock and its sub-blocks and the motion characteristic distance (MCD) is used to represent the motion characteristics similarity between one macroblock and its sub-blocks. For intra frames, the balance strategy based on the obtained SCI of the macroblock is used to generate the ABT-based JND model. For inter frames, the balanced strategy based on the obtained SCI and MCD of the macroblock is used to generate the ABT-based JND model. Using the ABT-based JND model, the residual coefficients for each block in a frame is filtered to obtain a reduced set of residual coefficients for transmission without degradation in visual quality.