In this paper we propose Integer wavelet transform(IWT) based scheme for reversible data hiding in encrypted images, after eliminating the rounding error BY mapping integers with cumulative distribution functions, one of the four bands of IWT are encrypted using fractal as a key, a novel reversible data hiding scheme (RDH) is done using histogram shifting. Other encryption and Data hiding method like logistic mapping and Least Significant Bit (LSB) embedding are developed and the experimental results are compared. The proposed methods demonstrated that this scheme outperforms all of other existing RDH schemes in encrypted domain in terms of higher PSNR at the same amount of payload. Compared with the state-of-the-arts, the proposed scheme has been applied to all natural images with higher embedding rate. © 2018 IEEE.