A method and apparatus for matching compressed video data under a wireless fading environment are disclosed. The apparatus includes an encoder for encoding and outputting the video data as a compressed bit stream, a channel error measurement unit for measuring Signal-to-Noise Ratio (SNR) or Carrier-to-Noise Ratio (CNR) of a wireless channel, and an encoder optimization module for determining if the current fading is slow fading or fast fading. A control signal is output to reduce a frame transmission ratio or to change the quality of the vide data if it is determined that the current fading is slow fading. Another control signal is output to adjust the size of a data output buffer of the wireless channel if it is determined that the current fading is fast fading. The apparatus also includes a temporal Scalable Video Coding (SVC) selector 24 and an SNR SVC selector 22 for selecting the frame transmission ratio or the bit rate according to the control signal output from the encoder optimization module, to provide a frame selection signal or a bit rate selection signal to the encoder.