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The spread of computing has led to an outburst in the volume of data in the communication world. The paper proposes the cascading of two algorithms PDLZW and Arithmetic Coding with cryptography. With the hierarchical parallel dictionary set, the search time can be reduced significantly and all these dictionaries are operated independently. While the results generated by Arithmetic Coding are close to the optimal value. Since cascaded compression may achieve the higher compression ratio for the file but does not provide required security aspects. Therefore, the advantage of cryptography has been taken by XORing the compressed data with the one-time key, providing compression and security simultaneously.
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