The present invention provides a method and apparatus for a bandwidth adaptive image compression/decompression scheme. In one embodiment, the present invention uses a special protocol between the sender and the receiver to measure the latency of the connection. This protocol and its result are sent and received at an interval based on a dynamic feedback loop algorithm. Based on the results of the protocol, a compression scheme is chosen. This scheme uses CPU time conservatively, and also transmits the most interesting data first. In another embodiment, the present invention throws away data that is repetitious, especially when the connection is down for a short period of time. In yet another embodiment of the present invention, measurements are taken for the perceptual degradation of the image for various compression schemes, and the results are supplemented with the results of the protocol to choose a viable compression/decompression scheme.