In this paper, a novel spatial error concealment algorithm, which adaptively switches between directional interpolation and region matching, is proposed. Different from the previous spatial error concealment methods, which just utilize smooth property, the algorithm exploits both smooth property and texture information to recover the lost blocks. Based on the DCT coefficients in the available neighboring MBs, the algorithm automatically analyzes whether the MB is "smooth-like" or "texture-like" and adaptively select directional interpolation or region matching to recover the lost MB. The proposed algorithm has been evaluated on H.264 reference software JM 9.0. The experimental results demonstrate that the proposed method can achieve better PSNR performance and visual quality, compared with weighted pixel average (WPA) which is adopted in H.264, directional interpolation-only and region matching-only.