New Approach for Reversible Data Hiding Using Visual Cryptography This paper presents a novel scheme for reversible data hiding with lossless recovery of original image. Scheme applies a method for hiding data in an image before encryption and then utilizes a novel method for encrypting the image using visual cryptography. A modified algorithm for reversible data hiding using difference expansion technique is used in this scheme. The proposed scheme thus increases the amount of data that can be hidden in the image which also guarantees the lossless recovery of an image after the extraction phase. The performance of the proposed reversible data hiding scheme is evaluated using different color images and compared with few existing schemes. The results clearly indicate that the proposed scheme can embed more data with less distortion of encoded image and also promises the lossless recovery of original image after data is extracted from decrypted image.