In this article an application of the inpainting algorithm for recovering packet losses from transmitting sequential quad tree compressed images over wireless sensor networks is presented. The aim of the proposed scheme is to reconstruct the missing information at the receiver side, based on the inpainting algorithm, instead of increasing the overhead of the network by requesting from the transceiver to re-transmit the lost data packets. The proposed architecture initially compresses the images sequentially using the quad tree decomposition algorithm. In the sequel, at the receiver side, the image is reconstructed as a lossy image, based on the available successfully received data packets, while afterwards the proposed scheme applies the image inpainting algorithm, in order to restore any missing partitions of the image. The inpainting algorithm is performed based on information derived from the the received image itself. Experimental results are presented that prove the efficacy of the proposed scheme.