An integrated circuit capable of video processing and a method thereof is disclosed. The integrated circuit comprises an image information generator, an adaptive motion vector (MV) candidate generator, and a block matching unit. The image information generator receives reference and current video data to determine image information. The adaptive MV candidate generator, coupled to the image information generator, receives the reference and current video data to generate spatial and temporal MV candidates, and generates an updated MV candidate based on the image information. The block matching unit, coupled to the adaptive MV candidate generator, receives the spatial and temporal MV candidates and the updated MV candidate and performs block matching to determine an output MV therefrom.