This paper presents an improved parallel Two-Pass Hexagonal (TPA) algorithm constituted by Linear Hashtable Motion Estimation Algorithm (LHMEA) and Hexagonal Search (HEXBS) for motion estimation. Motion Vectors (MV) are generated from the first-pass LHMEA and used as predictors for second-pass HEXBS motion estimation, which only searches a small number of Macroblocks (MBs). We used hashtable into video processing and completed parallel implementation. The hashtable structure of LHMEA is improved compared to the original TPA and LHMEA. We propose and evaluate parallel implementations of the LHMEA of TPA on clusters of workstations for real time video compression. The implementation contains spatial and temporal approaches. The performance of the algorithm is evaluated by using standard video sequences and the results are compared to current algorithms.