In this paper the authors present enhancement of data protection system for secret communication through common network based on reversible data concealment in encrypted images with reserve room approach. In this paper was implemented for true color RGB image and reserve room approach under multi scale decomposition. The blue plane will be chosen for hiding the secret text data. Then image is then separated into number of blocks locally and lifting wavelet will be used to detect approximation and detailed coefficients. Then approximation part is encrypted using chaos encryption method.