Abstract-Compression and encryption/decryption are necessary for secure and efficient storage and transmission of image data. Optical encryption, as a promising application of display devices, takes advantage of both the massive parallelism inherent in optical systems and the flexibility offered by digital electronics. We encrypt real-world three-dimensional (3D) objects, captured using phase-shift interferometry, by combining a phase mask and Fresnel propagation. Compression is achieved by nonuniformly quantizing the complex-valued encrypted digital holograms using an artificial neural network. Decryption is performed by displaying the encrypted hologram and phase mask in an identical configuration. We achieved good quality decryption and reconstruction of 3D objects with as few as 2 bits in each real and imaginary value of the encrypted data.Index Terms-Artificial neural network (ANN), digital holography, image compression, optical encryption, three-dimensional (3D) image processing.