An asynchronous transfer mode (ATM) wireless network has bursty and high error rates. To combat the contiguous bit loss due to damaged or dropped packets, this paper presents a code packetization and image reconstruction scheme. The packetization method distributes the loss in both frequency and spatial domains to reduce the chance that adjacent DCT blocks lose the same frequency components. The image reconstruction takes into consideration the spatial characteristics represented by the frequency components. Combining these two approaches is able to reconstruct the damaged images more accurately, even under very high loss rates. In addition, since the reconstruction technique is computational efficient, it conserves system resources and power consumption, which are restrictive in mobile computers.