In this paper, a reversible data hiding method in encrypted image (RDHEI) is proposed. Prior to image encryption, the embeddable pixels are selected from an original image according to prediction errors due to adjacent pixels with strong correlation. Then the embeddable pixels and the other pixels are both rearranged and encrypted to generate an encrypted image. Secret bits are directly embedded into the multiple MSBs (most significant bit) of the embeddable pixels in the encrypted image to generate a marked encrypted image during the encoding phase. In the decoding phase, secret bits can be extracted from the multiple MSBs of the embeddable pixels in the marked encrypted image. Moreover, the original embeddable pixels are restored losslessly by using correlation of the adjacent pixels. Thus, a reconstructed image with high visual quality can be obtained only when the encryption key is available. Since exploiting multiple MSBs of the embeddable pixels, the proposed method can obtain a very large embedding capacity. Experimental results show that the proposed method is able to achieve an average embedding rate as large as 1.7215 bpp (bits per pixel) for the BOW-2 database.Nowadays, RDHEI has received increasing attention in the research community, in which both the original image and secret data need to be protected. In RDHEI, image encryption and data embedding are accomplished by different users separately. The content-owner first encrypts the original image to a noise-like one according to encryption key, then the data hider embeds secret data into the encrypted image using a data-hiding key without knowing its original content. The receiver can perform different operations according to the available keys. This can be applied in many scenarios such as Cloud storage, medical image management system.In general, RDHEI can be divided into two categories, namely, vacating room after encryption (VRAE) [22][23][24][25][26][27][28][29][30][31] or reserving room before encryption (RRBE) [32][33][34][35][36][37][38][39]. Puech et al. [22] used an AES (advanced encryption standard) encryption algorithm to encrypt the original image, and then randomly selected a location in each 4×4 pixel block to embed the secret bits. In order to extract secret bits during the decryption phase, they performed a local standard deviation analysis of the marked image. The embedding rate (ER) of this method is very small, i.e., only 0.0625 bpp. Zhang [23] encrypted the original image using the stream cipher firstly and then divided the encrypted image into blocks and each pixel block was divided into two parts. In one part, the three LSBs of each pixel were flipped to embed a secret bit. On the receiver side, a fluctuation function was designed for data extraction and image recovery. Yu et al. [24] improves the method of Zhang et al. [23], so that the visual quality of decrypted images is improved. Wu et al.[25] adopted a prediction error to introduce two RDH methods in the encryption domain, namely, joint method and separable method. In or...