In this paper, we proposed an iterative digital image watermarking technique using encrypted binary phase computer generated hologram in the discrete cosine transform(OCT) domain. For the embedding process of watermark, using simulated annealing algorithm, we would generate a binary phase computer generated hologram(BPCGH) which can reconstruct hidden image perfectly instead of hidden image and repeat the hologram and encrypt it through the XOR operation with key image that is ramdomly generated binary phase components. We multiply the encrypted watermark by the weight function and embed it into the DC coefficients in the DCT domain of host image and an inverse DCT is performed. For the extracting process of watermark, we compare the DC coefficients of watermarked image and original host image in the DCT domain and dividing it by the weight function and decrypt it using XOR operation with key image. And we recover the hidden image by inverse Fourier transforming the decrypted watermark. Finally, we compute the correlation between the original hidden image and recovered hidden image to determine if a watermark exits in the host image. The proposed watermarking technique use the hologram information of hidden image which consist of binary values and encryption technique so it is very secure and robust to the external attacks such as compression, noises and cropping. We confirmed the advantages of the proposed watermarking technique through the computer simulations.