At present, in reversible information hiding algorithm of image, the difference expansion idea is used. After the carrier image encryption, in encrypted image, information bits are embedded in the low value, resulting in the fact that in the image embedded with watermarking information, a part of the boundary pixel value has flipped. After being extracted, the carrier image cannot be recovered completely that is not only a large quantity of calculation, and the image quality has also been some damage. A algorithm for reversible information hiding of encrypted the medical image in the homomorphic encryption domain is proposed. Combining wavelet and fast fuzzy algorithm, the image edge is extracted from the high frequency and low frequency parts of medical image, and the medical image is reconstructed in the compressed boundary part. Combined with the thought of block compressed sensing and block edge pixels, the reconstructed medical image is divided to multiple non-overlapping blocks. The pixel in the right lower edge of the block is made homomorphic encryption operation, the remaining pixels are made compressed sensing operation, and the two parts are combined to a ciphertext to be sent to the owner of the channel According to the information hiding key the secret information is embedded into the ciphertext by the channel owners. The receiver can extract the information and restore the original image based on the encryption key and the information hiding key. The experimental results show that the proposed algorithm has high embedding capacity, the image quality after recovery is high, and the computational complexity is low. 2010 Mathematics Subject Classification. 43A35. Key words and phrases. Homomorphic encrypted domain, encrypted medical image, reversible information hiding algorithm.