A method and a system for video frame processing are proposed. The method is applicable to a system including a computing device and a head-mounted display having a motion sensor, a processor, and a display. The method includes the following steps. A sequence of rendered video frames including a first frame and a second frame subsequent to the first frame is received by the processor from the computing device. A first head movement of the head-mounted display is obtained from the motion sensor by the processor, where the first head movement is associated with the first frame. An interpolated frame is rendered according to the first frame, the second frame, and the first head movement and displayed subsequent to the first frame and prior to the second frame on the display by the processor.