The document proposes a novel joint data-hiding and compression scheme for digital images using side match vector quantization (SMVQ) and image inpainting. It integrates data hiding and image compression into a single module. On the sender side, residual blocks are embedded with secret data and compressed using SMVQ or image inpainting. The receiver can extract secret bits and decompress the image using the index values in segmented sections. Experimental results demonstrate the effectiveness of the proposed scheme.