This paper provides an in-depth study and analysis of image processing for graphic design through chaotic encryption combined with a wavelet transform algorithm. Firstly, the traditional Mallat algorithm is optimized; since the mean value of the transform coefficients generated after the wavelet transform of the image is used as the initial value of the chaotic system to iterate, when the image is modified, then the mean value of the wavelet coefficients will also change, and the final iteration comes out as two different sequences using the property that the chaotic system is extremely sensitive to the initial conditions, so the algorithm has a certain sensitivity to tampering and localization effect. The image of the encrypted graphic design is decrypted by the chaos decryption system, and the final image information of the graphic design is obtained. In terms of the security of the graphic design image itself, the complex dynamical properties of chaos are fully utilized to encrypt it, and the algorithm has a good encryption effect after statistical characteristic analysis, attack complexity, difference analysis, adjacent pixel correlation analysis, and key sensitivity analysis. The plaintext image is decomposed in odd-even sequence using the boosting algorithm to get the sequence with an even index and the sequence with an odd index; then, the diffusion algorithm is applied to the two sequences by the prediction and update algorithm, and this process is repeated many times to get the two ciphertext sequences after scrambling, merging these two sequences, and matrixing them to get the ciphertext image. Finally, the testing of the embedded planar designed image revolves around four aspects, namely, image processing, tamper sensitivity, robustness, and imperceptibility, to examine the designed planar designed image system. In the diffusion manipulation, the key matrix for diffusion is obtained using the threshold processing method of the Local Binary Pattern (LBP) algorithm for the matrices generated by the Logistic Chaos system, which improves the randomness of the algorithm. The experimental results verify the effectiveness and security of the algorithm.