In this paper, we propose a novel layered scalable- multiple description coding (LS-MDC) which offers the benefits of both scalable video coding and multiple description coding for robust video transmission over packet lossy networks. In the proposed LS-MDC method, multiple descriptions including base layer, enhancement layers, and their corresponding FEC parity data are allocated into two network paths of a path diversity system. Unlike the conventional approaches, the source base/enhancement data and their own parities in the proposed method are not transmitted together but are transferred over different paths. Therefore, the effect of burst packet losses can be effectively reduced for the descriptions. Furthermore, in order to minimize the overall distortion for the LS-MDC system and exploit the benefits of path diversity, we also propose an optimal rate allocation scheme that can adaptively control the transmission rate as well as the channel coding rate for media senders. Experiments show that the proposed method provides much better peak signal-to-noise ratio (PSNR) than conventional MDC techniques.