In order to improve the overall performance of embedding algorithm,t his paper proposes a reversible data hiding algorithm for color images based on three-difference histogram shif ting and complementary embedding. The algorithm uses correlation of color components and relationship between pred iction errors to decrease difference and the peak of difference histogram is increased.The embedding schem e makes use of three-difference histogram shifting and double-embedding method to increase the capacity,and use s inverse direction to expand the pixel value,chooses two direction predictions to compute prediction error,the ch ance of expansion canceling out each other is increased,so the image quality is improved.Experimental results show the embedding capacity and the quality of stego-image are significantly improved compared with other alg orithms.