Based　on　the　International　Telecommunication　Union　Telecommunication　Standardization　Sector　(ITU-T)　standardization　G.　729.　1,　an　embedded　variable　bit-rates　stereo　speech　and　audio　coding　method　is　proposed　in　this　paper.　In　this　coding　algorithm,　the　middle　information　and　side　information　of　stereo　signal　are　processed　separately　by　G.　729.　1　and　modified　modulated　lapped　transform　coding　techniques,　the　structure　of　bit-stream　is　embedded　and　the　bit-stream　can　be　divided　into　several　layers.　Wideband　stereo　signal　and　super-wideband　stereo　signal　all　can　be　processed　by　this　codec.　The　maximum　bit-rates　of　wideband　stereo　signal　and　super-wideband　stereo　signal　are　48kb/s　and　64kb/s,　respectively.　The　test　results　indicate　that　the　quality　of　the　embedded　speech　and　audio　coding　algorithm　at　stereo　coding　layers　is　close　to　Terms　of　Reference　for　ITU-T　G.　EV-VBR　stereo　codec.