This paper presents a 3 in 1 standalone FPGA system which can perform color image blur detection in parallel with compression and encryption. Both blur detection and compression are based on the 3-level Haar wavelet transform, which is used as a common building block to save the resources. The compression is based on performing the hard thresholding scheme followed by the Run Length Encoding (RLE) technique. The encryption is based on the 128-bit Advanced Encryption Standard (AES), which is considered one of the most secure algorithms. Moreover, the modified Lorenz chaotic system is combined with the AES to perform the Cipher Block Chaining (CBC) mode. The proposed system is realized using HDL and implemented using Xilinx on XC5VLX50T FPGA. The system has utilized only 25% of the available slices. Furthermore, the system can achieve a throughput of 3.458 Gbps, which is suitable for realtime applications. To validate the compression performance, the system has been tested with all the standard 256×256 images. It is shown that depending on the amount of details in the image, the system can achieve 30dB PSNR at compression ratios in the range of (0.08-0.38). The proposed system can be integrated with digital cameras to process the captured images on-the-fly prior to transmission or storage. Based on the application, the blurred images can be either marked for future enhancement or simply filtered out.