The present invention provides a system and method for adaptively compensating distortion caused by video compression, the method first conducts an edge texture detection and block boundary detection to an image, classifies the area where the pixels to be processed is located to determine whether the pixel is located at a ringing artifact prone area or near the block boundary with blocking artifact. Next, according to the area of the pixel to be processed and the degree of distortion, the present invention adaptively compensate the distortion using different filtering strategies, so as to improve image effect of low bit-rate transmission at the display end, so that a real time requirement that playing at a high-definition, and ultra high-definition display is satisfied.