Aspects of a method and system for priority-based digital multi-stream decoding. A multi-stream decoder may be enabled to decode and present multiple streams of a multi-stream multimedia application, simultaneously. The multi-stream decoder may be enabled to determine a priority level for each of the received multiple streams of the multimedia application. A high-priority stream may be decoded and presented at a high frame rate and a relative high resolution level, while a lower-priority stream may be decoded and presented at a low frame rate and a relative low resolution level. The decoded frames may be presented in a picture-in-picture format. The priority level for each of the received multiple streams may depend on user input, a user profile, and/or a display capability.