
Someone from work sent me a video to edit. The file is sent as a MPEG file and I want to edit the MPEG in iMovie. How do I make it so I can open it on a Mac and drag the MPEG file into iMovie? Right now I can’t open to edit. Looking for solutions in Google, I picked out the best way. Now I will share with all the guys here who wanna import MPEG files(even muxed MPEG-1 and MPEG-2) in iMovie on Mac OS X.
As a matter of fact, it is not a big deal. Brorsoft Video Converter for Mac will get you out of the trouble. With it, you not only can easily transcode MPEG including MPEG-1, MPEG-2, MPEG-4 to iMovie performed Apple InterMediate Codec within a few clicks, you can also encode MPG, AVI, WMV, MKV, VOB, MTS, MXF, etc videos to Apple ProRes for FCP, DNxHD for Avid Media Composer, MPEG-2 for Adobe Premiere Pro, etc on Mac OS X(Mavericks and Yosemite included). I have used it to covert many MPEG video clips on my MacBook. It works fast and keeps the original quality as I wish.
[How-to]: Transcode MPEG to iMovie with highest settings
Step 1: Install and run the MPEG to iMovie converter on Mac, and then click "Add files" icon to import your MPEG-2, MPEG-4, MPEG-1 files. It supports batch conversion.

Step 2: Hit the Format box to select the specially designed video codec for editing in iMovie: iMovie/FCE --> Apple InterMediate Codec(AIC) (*.mov).

Step 3: (Optional) Adjust the video and parameters, including the Bitrate of Video and Audio, Audio, Video Size, Sample Rate, Frame Rate, Audio Channels, etc., by clicking the Settings buttion on the main interface.

Step 4: Click the arrow button to start transcoding MPEG to AIC .mov for iMovie immediately. After the conversion finished, you can easily transfer your MPEG files to iMovie for further editing without any problem.
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Source: How to import muxed MPEG-1 and MPEG-2 to iMovie