This paper introduces a novel one-dimensional sine chaotic system (1DSCS) with large parameter interval. The evaluation of 1DSCS indicates that the system has good chaotic characteristics and large parameters space. Based on 1DSCS, a new image encryption scheme is proposed. First, the image is scrambled by the row and column indexes, and then scrambled by the dynamic parameters Arnold map. This scheme avoids the inadequacy of row-column index scrambling and the periodicity of Arnold map. Second, four highly sensitive dynamic diffusion formulas related to plaintext are designed, and the dynamic formulas are selected through the chaotic sequence generated by 1DSCS. Third, the scheme proposed in this paper can also be applied to color image encryption. The experimental results demonstrate that the 1DSCS system is suitable for image encryption and the encryption scheme has good security to resist common attacks.