H.264/ AVC (Advanced video coding) is a standard of the ITU-T, VCEG(Video coding Experts Group, ISO/ IEC, Moving Picture Experts Group. H.264/AVC standardization has enhanced compression performance. It is also a network friendly video representation. The various applications of H.264 are video telephony, storage, broadcast etc. It has achieved a significant improvement in compression ratio. In this paper, H.264/ Advanced video coding is implemented for color as well as medical images as X-Ray and MRI images using Matlab. The compression ratio achieved for natural RGB images is higher than the X-Ray images while encoding time required for X-Ray images is less as compared to natural images. The results are obtained for the same and compared with various parameters as encoding time, compression ratio, PSNR etc. This is first innovation in compression; none of the researcher has presented such innovation in compression field in past one decade.