In this paper, a new multiuser optical image encryption and authentication technique is proposed. Sparse multiplexing and polar decomposition are used in the Fresnel domain to obtain the ciphertext of an input image. To enable the multiuser platform, multiple private keys are obtained through polar decomposition during the encryption process. It will allow multiple authorized users to access the secure information simultaneously without having the key distribution problem among them. The proposed method has a large key space and robust against several attacks, such as, contamination attacks (noise and occlusion), brute force attack, plaintext attacks, and special iterative attack. A comparative analysis of the presented technique is also performed with the similar existing techniques. The numerical simulation results demonstrate the robustness and feasibility of the proposed algorithm.