This paper proposes a distributed packet protection mechanism that can minimize the packet loss probability for mesh based P2P video streaming systems. The proposed scheme combines a peer selection method with forward error correction (FEC) codes. The parent peers select the child peers, which can achieve the minimal packet loss probability compared to other candidate child peers, to transmit the FEC redundant substream. Moreover, the proposed scheme utilizes a packet loss model to estimate the packet loss probability in a mesh based P2P network. The packet loss propagation among peers is modeled through Markov random field (MRF). Simulation results demonstrate that our scheme can effectively mitigate packet loss in a mesh-based P2P network.