The invention discloses a video coding and network transmission method and a video forwarding server. The video coding and network transmission method comprises the steps of A, carrying out coding on each frame of image, generating standard code stream according to preset display standards, the lowest bandwidth capable of playing the standard code stream smoothly is defined as a standard bandwidth; B, judging real-time bandwidths, dissociating at least one frame image from the frame images displayed by the standard code stream each second by adopting the mode of dropping frames initiatively if the real-time bandwidths are lower than the standard bandwidth, generating sending code stream transmitted outwards, adding at least one frame of image data from the dissociated frame data by adopting an initiative frame adding mode if real-time bandwidth is increased after the frames are dissociated, and transmitting the standard code stream outwards if the real-time bandwidths are larger than or equal to the standard bandwidth. According to the video coding and network transmission method and the video forwarding server, the image quality of each frame is not lowered, the smooth displaying of videos can be guaranteed, therefore, the video quality of different bandwidth situations can be improved, and extra communication cost cannot be increased.