This paper presents a novel data hiding scheme combing reversible, encryption mechanism and auxiliary syndrome. An original plain image is segmented into two parts. Then, with the aid of histogram shifting, the auxiliary syndrome generated from the first part subimage is embedded into the second part of the original uncompressed image and the encoded image is encrypted using an encryption key. After image encoding and encryption, message is embedded into the first subimage of cipher image and every pixel can load a bit of secret message. At the receiver side, using the encryption key and extracted auxiliary syndrome, the embedded data can be successfully extracted and the original image can be perfectly recovered.