this paper represents a reversible data hiding scheme for encrypted images. Block permutation is used to encrypt the cover image through encryption key. Then, the data to be hidden is embedded into the cover image by converting the pixels of it into binary. Data recovery and direct decryption and cover image recovery are conducted by the recipient using the same encryption key and data-hiding key used earlier which uses the property of spatial correlation of the image pixels. Improved algorithm is used in this paper which embedded 'n' secret bits per block. Test results and correlation are done to outline the viability of the proposed scheme. © 2019 IEEE.