This paper presents a novel occlusion adaptive frame rate up-conversion method. The proposed method consists of two main steps; true motion estimation and directionally adaptive motion compensated interpolation. In order to reliably estimate the motion vectors of occlusion regions without increasing the number of frames, forward and backward directed motion vectors are merged recursively. Following the motion estimation step, a motion compensated interpolation is done by determining the temporal interpolation source directions under an OBMC framework. The experimental results show that the proposed approach improves the frame rate up-conversion performance and reduce the occlusion related halo artifacts compared to the conventional approaches. © 2011 IEEE.