Video compression is becoming increasingly important with the advent of broadband networks and compression standards. Asynchronous transfer mode (ATM) is fast emerging as a means of transferring packetized voice, video and data on high speed networks. However, transmission of data using ATM networks may result in the loss of packets when required bandwidth exceeds the available bandwidth or when there is a buffer overflow at the receiver. Compressed video transmission over ATM results in degraded picture quality because of cell losses. In this paper, we present novel techniques based on vector quantization which not only provides a good coding performance but is also robust to cell losses in ATM networks. Our simulation results indicate that the proposed techniques provide a significant improvement in the image quality over a wide range of cell loss rates.