Video compression system are used in many commercial things/products, consumer electronic devices such as mobile phones, digital camcorders to video calling systems. This type of applications make the video compression hardware devices an inevitable part of many commercial products. To improve the performance of the existing applications, many international standard for video compression are existing which uses intra prediction. This new standard improves video compression efficiency based on Intra Prediction. To achieve compression within a frame is the goal behind intra prediction. The neighboring pixels within the picture frame tend to have similar values in order to exploit the spatial redundancy, the prediction is done based on the values of reconstructed pixels of previous sub block. There is total nine modes are known. From them eight modes are directional modes and used to predict structures in a picture such as edges at various angles and textures. In H.264 there are total nine modes which needs to compute for intra prediction, which are very high, to reduce them we proposed new method for mode computation for intra prediction. Implemented an efficient intra prediction scheme and compared to literature the block based Intra prediction techniques. PSNR is increased with 0.5dB and computation complexity reduced by 3.03% and structural similarity index is found out almost 75% which indicated superior video quality.