The internet and multimedia are the fastest development technology, the problem of protecting transmitted information become an important issue. To save the network bandwidth and to reduce redundancy and to improve the decompressed quality compression techniques can be implemented .The system shown a joint data hiding and image compression using side match vector quantization and image inpainting, the system helps to increase the implementation efficiency and avoid the risk of attack. Here system use both codebook and subcodebooks to generate the index values and it also including the topmost row and the left most column of the image with each other residual block in raster scanning order and it can be embed with secret data and it will compressed simultaneously by side match vector quantization (SMVQ) or image inpainting. https://journalnx.com/journal-article/20150278