An efficient method of completely separable reversible data hiding in encrypted images is proposed. The cover image is first partitioned into nonoverlapping blocks and specific encryption is applied to obtain the encrypted image. Then, image difference in the encrypted domain can be calculated based on the homomorphic property of the cryptosystem. The data hider, who does not know the original image content, may reversibly embed secret data into image difference based on two-dimensional difference histogram modification. Data extraction is completely separable from image decryption; that is, data extraction can be done either in the encrypted domain or in the decrypted domain, so that it can be applied to different application scenarios. In addition, data extraction and image recovery are free of any error. Experimental results demonstrate the feasibility and efficiency of the proposed scheme.