For problem that traditional video compression technology is not suitable for application in bad network environment, the paper proposed a design scheme of remote video monitoring system based on H.264. The system combines embedded technology, network technology and video coding technology together, video signal collected by camera of the embedded system was transferred to remote monitoring terminal in real time through built-in Web server of the system after it was compressed according to H.264 standard code, so as to realize interconnection communication between browser of the remote monitoring terminal and embedded Web server. The test result shows that the system has high video compression ratio, clear image and strong real-time performance.