This paper discuss about RDH technique in encrypted image. In this paper RDH use single-level-2D-DWT and optimal transfer mechanism. Original image is converted into number to string which is having some numeric values. In the RDH technique a host image is taken and is divided into two parts. The pixel values of each part are calculated and estimate the errors using optimal mechanism. Optimal mechanisms find out the errors which are closer to zero and reduce the payload distortion problem. Then data will be embedded. Single-level-2D-DWT is used for filtration of embedded data; it will help in removing the de-noising, compression, expansion of image. The image will be hided and that hided image is send to recipient. The sender will send the two keys. The recipient will successfully take out the embed covert data and recovered the original data using inverse process.