Abstract: This paper presents a new image encryption algorithm based on wavelet and chaotic. Firstly, after the level one of wavelet, the Arnold transform is used to shuffle Low-frequency approximate son figure of the image. Then the sequence values of the Logistic chaotic system are adopted to exclusive or the shuffled image. The last is wavelet inverse transform. The experimental results demonstrate that the new algorithm has mild damage to an image, but it is efficient, high secure and independent of the adjacent pixel algorithm.