An advanced two-step motion estimation algorithm that uses adjustable partial distortion for fast motion estimation is proposed. To overcome the demerits of existing two-step search algorithms, we propose a new, fast two-step algorithm, which achieves both speed and peak signal-to-noise ratio (PSNR) improvement by adding two predicted points. We improve the two-step search by using the relationship between a neighbor block and the current block. The proposed algorithm is 187 times faster than full search and 2.7 times faster than two-step edge based A partial distance search with negligible PSNR degradation. Therefore it is suitable for real-time video implementation.