The application of information hiding to image compression is investigated to improve compression efficiency for JPEG color images. In the proposed method, entropy-coded DCT coefficients of chrominance components are embedded into DCT coefficients of the luminance component. To recover an image in the face of the degradation caused by compression and embedding, an image restoration method is also applied. Experiments show that the use of both information hiding and image restoration is most effective to improve compression efficiency. Copyright © 2013 The Institute of Electronics, Information and Communication Engineers.