This paper proposes a reversible data hiding algorithm for images base d on encoding compression and encryption.The errors between pixel values and their prediction values are firs t calculated,and then compressed with Huffman coding to obtain the compressed da ta and Huffman table.The compr essed data and random data are encrypted to reconstruct an image for cover data. The Huffman table and secret information are embedded into the cover data so as to achieve data hiding.The Huffman table and secret information can be extracted from the stego data.The c ompressed data is decrypted.the Huffman table and prediction method are combined for recovering the original ima ge.The experimental results demonstrate the proposed method has high capacity.It not only can extract secre t data accurately,but also recovers the original image without error.