The paper presents applications of neural network algorithms to the design of an adaptive vector quantizer. Vector quantization has been applied to the problem of displaying natural images with a reduced set of colors (colormap) and to the interframe coding of image sequences. The first step was to test classical Linde Buzo Gray (LGB), self organizing feature maps (SOFM) and Competitive Learning (CL) algorithms for the codebook design. The best results for the reconstructed quality image and the computational time are obtained using a CL algorithm with a new initialization strategy that solves the problem of underutilized nodes. An adaptive vector quantization algorithm is proposed and tested in a motion compensated image coder. The results of the simulations are very promising. In fact the coder performance, compared with that using a fixed VQ, is considerably improved and the subjective quality of the coded images is much better than that obtained using standard vector quantization, especially when rapid motion is present in the scene. >