The visually annoying artifacts resulting form block matching algorithm (BMA), blocky artifacts, become noticeable in applications for low bit rates. Warping prediction (WP) based schemes can remove the blocky artifacts of BMA successfully, but they also produce severe prediction errors around the boundaries of moving objects. Since the errors around the boundaries of objects are visually sensitive, they may sometimes look more annoying than blocky artifacts. The lack of ability of modeling motion discontinuities is the major reason of the errors from WP. Motion discontinuities usually exist in practical video sequences, so that it is required to develop a more reliable motion estimation and usually exist in practical video sequences, so that it is required to develop a more reliable motion estimation and compensation scheme for low bit rate applications. In this paper, we propose a new WP scheme, named region constrained warping prediction (RCWP), which places motion discontinuities according to the segmentation results. In RCWP, there is mutual dependency between estimated motion field and segmentation mask. Because of the mutual dependency, an iterative refinement process is also introduced. Experimental results have shown that the proposed algorithm can provide much better subjective and objective performance than the BMA and the conventional warping prediction.