The invention is a system and method for processing a compressed data stream. The compressed data stream has a first group of source segments and a second group of source segments. For the first group of source segments, it is not necessary to decompress the source segments during the processing, and only status thereof, like timestamps, are needed to be modified. Comparatively, for the second group of source segments, it is necessary to decompress the source segments for successive manipulation. A recompression is the processed on the manipulated data segments. Finally, the resulting first group and second group of segments are combined together to generate a processed compressed data stream. Because of unnecessary decompression and recompression are dispensed with, significant efficiency is obtained and less error propagation occurs during processing the compressed data stream.