This letter proposes a rate control algorithm for H.264 video encoder, which is based on block activity and buffer state. Experimental results indicate that it has an excellent performance by providing much accurate bit rate and better coding efficiency compared with H.264. The computational complexity of the algorithm is reduced by adopting a novel block activity description method using the Sum of Absolute Difference (SAD) of 16×16 mode, and its robustness is enhanced by introducing a feedback circuit at frame layer. This letter proposes a rate control algorithm for H.264 video encoder, which is based on block activity and buffer state. Experimental results indicate that it has an excellent performance by providing much accurate bit rate and better coding efficiency compared with H.264. The computational complexity of the algorithm is reduced by adopting a novel block activity description method using the Sum of Absolute Difference (SAD) of 16 × 16 mode, and its robustness is enhanced by introducing a feedback circuit at frame layer.