From the user point of view, security and efficiency are the two main factors for any authentication scheme. However, most of the smart card authentication schemes are vulnerable to one or the other possible attack. In this paper, highly secured smart card authentication scheme is proposed using image encryption that resists all the possible attacks and satisfies the needs of a user. Its security is based on encryption of text with a key image. Moreover, it provides mutual authentication, session key establishment and uses date and time as a timestamp to resist replay attack.