In this paper, we propose a novel sparsity-based image error concealment (EC) algorithm through adaptive dual dictionary learning and regularization. We define two feature spaces: The observed space and the latent space, corresponding to the available regions and the missing regions of image under test, respectively. We learn adaptive and complete dictionaries individually for each space, where the training data are collected via an adaptive template matching mechanism. Based on the piecewise stationarity of natural images, a local correlation model is learned to bridge the sparse representations of the aforementioned dual spaces, allowing us to transfer the knowledge of the available regions to the missing regions for EC purpose. Eventually, the EC task is formulated as a unified optimization problem, where the sparsity of both spaces and the learned correlation model are incorporated. Experimental results show that the proposed method outperforms the state-of-the-art techniques in terms of both objective and perceptual metrics.