The invention provides a method of implementing video code stream frame rate adjustable compression, the type of the compression image comprises I frame, non-I frame, P frame, non-P frame and B frame, in the process of decoding, time domain level of each frame image of I frame or P frame is varied periodically as the size of unit group; in the process of coding, the time domain level of current frame image is determined according to the current frame image coding sequence firstly, and then the reference frame image of current frame image is obtained according to reference frame selection strategy, the current frame image is encoded, the reference frame caching is updated according the reference frame updating strategy after accomplishing coding; in decoding, the time domain level of current frame image is determined according to the current frame image decoding sequence, and then the reference frame image of current frame image is obtained according to reference frame selection strategy, the current frame image is decoded, the reference frame caching is updated according the reference frame updating strategy after accomplishing decoding. The compressed code stream has the function of adjustable frame rate, which is capable of adapting transmission of different networks and display of different terminal device.