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This article proposes a reversible high-capacity watermarking algorithm for the H.264/AVC video standard. The technique applies the concept of Differential Expansion (DE) on the pixel values of the IPCM macroblocks generated by the H.264/AVC encoder. To ensure a high watermark payload, the algorithm performs the embedding in multiple layers. Initial experimental results showed that the technique not only outperforms similar techniques in terms of payload capacity but also guarantees minimal computational complexity owing to simple mathematical operations involved in the watermark embedding and extraction along with encouraging R-D characteristics. Also, the video could be restored back to its original form after extraction thereby verifying its reversibility.