Certain aspects of a method and system for dynamically adjusting forward error correction (FEC) rate to adapt for time varying network impairments in video streaming applications over IP networks may be disclosed. At a server side of a client-server communication system, a rate of transmission of forward error correction (FEC) packets to one or more clients may be dynamically adjusted based on receiving at least one upstream FEC packet from a plurality of clients. The rate of transmission of the FEC packets to the plurality of clients may be increased when a rate of occurrence of lost data packets is above a particular threshold value. The upstream FEC packets may comprise an urgent packet requesting transmission of a particular FEC packet in order to recover one or more particular lost data packets.