Thien-and-Lin's polynomial-based secret image sharing (PSIS) is utilized as the basic method to achieve PSISs with better performances, such as meaningful shares, two-in-one property and shares with different priorities. However, this (k, n) threshold PSIS cannot achieve lossless recovery for pixel values more than 250. Furthermore, current solutions to lossless recovery for PSIS have several natural drawbacks, such as large computational costs and random pixel expansion. In this paper, a lossless and efficient (k, n) threshold PSIS scheme with reduced shadow size is presented. For lossless recovery and efficiency, two adjacent pixels are specified as a secret value, the prime in the sharing polynomial is replaced with 65,537, and then the additional screening operation can ensure each shared value in the range [0, 65,535]. To reduce shadows size and improve security, only the first k − 1 coefficients are embedded with secret values and the last coefficient is assigned randomly. To prevent the leakage of secrets, generalized Arnold permutation with special key generating strategy is performed on the secret image prior to sharing process without key distribution. Both theoretical analyses and experiments are conducted to demonstrate the effectiveness of the proposed scheme.