A data hiding method based on least significant bit (LSB) substitution and multi-pixel differencing (MPD) is presented on the proposed method to improve the capacity of the hidden secret data and to provide an imperceptible visual quality. First, a sum of different values for four-pixel sub-block is calculated. The low value of the sum can be located on a smooth block and the high value is located on an edged block. The secret data are hidden into the cover image by LSB method in the smooth block, while MPD method in the edged block. The experimental results show that the proposed method has a higher capacity and maintains a good visual quality.