A wireless digital picture frame with video streaming capabilities comprises: a body having a video display unit, a first audio I/O unit, a first input unit, a first processor, and a first wireless transceiver unit; and a wireless camera having a video input unit, a second audio I/O unit, an audio codec unit, a second processor, and a second wireless transceiver unit. The body and the wireless camera communicate with each other through Wi-Fi connection. The wireless communication thus enables the wireless camera to capture A/V signals and transmit the captured signals back to the first processor of the body to be played by the video display unit and the first audio I/O unit; at the same time, the captured A/V data may also be stored to an external storage medium connected to the wireless digital picture frame. The above process forms a video recording mode and a surveillance mode.