This paper presents new methods for use of dense motion fields for motion compensation of interlaced video. The motion estimation is based on previously decoded field-images. The motion is then temporally predicted and used for motion compensated prediction of the field-image to be coded. The motion estimation algorithm is phase-based and uses two or three field-images to achieve motion estimates with sub-pixel accuracy. To handle non-constant motion and the specific characteristics of the field-image to be coded, the initially predicted image is refined using forward motion compensation, based on block-matching. Tests show that this approach achieves higher PSNR than forward block-based motion estimation, when coding the residual with the same coder. The subjective performance is also better.