Abstract: In order to solve the contradiction between the concealment of watermarked image and embedded watermark information capacity. A reversible image watermarking algorithm with adaptive two-pass based on prediction distortion embedding was proposed. Firstly, the image is divided into blocks, the texture complexity of the sub-blocks is measured by variance. and the initial value of sub-block embedding intensity is set according to the texture complexity. and then dynamically adjust the embedded intensity by sub-block prediction distortion. Finally, embedded watermarking is carried out by embedding intensity adaptive two-pass. The experimental results show that the proposed method can reduce image distortion effectively in high capacity embedding, when the image is Airplane, when the embedding capacity is 0.1bpp (the number of bits per pixel), the PSNR is 54dB. When the embedded capacity reaches 1bpp, the PSNR is 35dB.A high-capacity and high-quality image reversible watermarking algorithm is implemented.