Summary: An image encryption algorithm based on chaotic sequences, permutation matrices and Latin squares was constructed. Firstly, an XOR operation was performed between a grey-scale map and a matrix composed of a chaotic sequence based on the Logistic model in order to complete image preprocessing. Secondly, it was embedded in a larger random matrix and marked. Thirdly, the positions of image pixels were scrambled by permutation matrices and a complete Latin square. It was shown by simulation and parameter calculations that the encryption is effective, the key size is moderate, the key space is large, the encryption time is short and it has ideal performance to resist various attacks.