A just noticeable disparity error (JNDE) measurement to describe the maximum tolerated error of depth maps is proposed. Any error of depth value inside the JNDE range would not cause a noticeable distortion observed by human eyes. The JNDE values are used to preprocess the original depth map in the prediction process during the depth coding and to adjust the prediction residues for further improvement of the coding quality. The proposed scheme can be incorporated in any standardized video coding algorithm based on prediction and transform. The experimental results show that the proposed method can achieve a 34% bit rate saving for depth video coding. Moreover, the perceptual quality of the synthesized view is also improved by the proposed method.