This paper presents a new error concealment algorithm, which is suitable for the H.264/AVC coding standard and the hardware implementation. This algorithm can be dividing into two major categories. In the spatial domain, we use the reliable neighboring pixel values with edge detection method to conceal all the lost pixels in the block. In the temporal domain, we propose a variable block size error concealment method. It consists of a block size determination step to determine the type of the lost macro-block and a motion vector recovery step to find the optimal motion vector from the current frame. In the block size determination step, we propose a criterion to determine the size type of the lost block from the neighbor's macro-blocks. In the motion vector recovery step, the optimal motion vector for the lost block chosen from the neighbor's block in the current frame. And it is the minimum value of the side match distortion of the lost block. This proposed algorithm can not only determine the most correct mode for the lost block in a easy way, but also save the much more computation time for error concealment, which is more suitable for hardware implementation.