The invention discloses a high-capacity reversible watermark embedding and extracting method, which mainly includes the following steps: calculating prediction errors of pixel predicted values of all pixels in an image; constructing a statistic column diagram according to the prediction errors, dividing the pixels in the image into an embeddable pixel set embedded with watermark data, and a movable pixel set capable of moving horizontally; and embedding the watermark data into the pixels with the prediction errors lower than a set threshold value. During embedding, one bit or multiple bits of watermark information is embedded into a single pixel in a self-adaptive manner according to the texture complexity of the image, so that the single embedding rate can achieve more than 2BPP (bits per pixel), and the embedding capability is efficiently improved. In addition, even multiple bits of watermark information are embedded into the single pixel, the used prediction error are still the original prediction errors, therefore, the embedding distortion is efficiently lowered, namely, the higher image quality is ensured on the premise that the embedding capability is efficiently improved.