Reversible data hiding in encrypted images is an eff ective technique for data hiding and preserving image privacy. In this paper, we propose a novel schema based on polynomial arithmetic, which achieves a high embedding capacity with the perfect recovery of the original image. An effi cient two-layer symmetric en- cryption method is applied to protect the privacy of the original image. One polynomial is generated by the encryption key and a group of the encrypted pixel, and the secret data is mapped into another polynomial. Through the arithmetic of these two polynomials, the purpose of this work is achieved. Fur- thermore, pixel value mapping is designed to reduce the size of auxiliary data, which can further improve embedding capacity. Experimental results demon- strate that our solution has a stable and good performance on various images. Compared with some state-of-the-art methods, the proposed method can get better decrypted image quality with a large embedding capacity.