In this paper, we described a framework for peer-assisted multi-path video distribution combined with cooperative caching. The target of this framework is to aggregate peers’ storage and bandwidths to facilitate video-on-demand streaming. To achieve this goal, we employ segment-based video caching and the segments are distributed in respective peers. Specifically, the source bit stream is based on layered scalable video coding for cost-effective video distribution. For achieving low -cost collaboration, a utility-based partial caching scheme is proposed and detailed discussed. Extensive simulations on large, Internet-like topologies were performed to demonstrate the effectiveness of this proposed framework.