In low bit-rate video communication, temporal subsampling is usually used due to limited available bandwidth. Motion compensated frame interpolation (MCFI) techniques are often employed in the decoder to restore the original frame rate and enhance the temporal quality. In this paper, we propose a low-complexity and high efficiency MCFI method. It first examines the motion vectors embedded in the bit-stream, then carries out overlapped block bi-directional motion estimation on those blocks whose embedded motion vectors are regarded as not accurate enough. Finally, it utilizes motion vector post-processing and overlapped block motion compensation to generate interpolated frames and further reduce blocking artifacts. Experimental results show that the proposed algorithm outperforms other methods in both PSNR and visual performance, while its complexity is also lower than other methods.