Abstract: Background: There have been discussed several data hiding techniques in an image which can embed the data in secret manner. However, after retrieving the secret data from an image, the original cover image information is not possible to be reconstructed. It is an important issue to have a lossless data hiding scheme which can reconstruct the original cover image without any loss after extracting the secret data. Materials and Methods: In this study a novel idea is introduced for lossless data hiding using adjacency pixel difference. Results: Here histogram is drawn for the pixel difference and secret bits are embedded only in the peak point of the histogram and tested on five gray scale cover images. Conclusion: In this method good amount of secret data can be embedded with high PSNR value.