In this paper, we have proposed a full phase encryption scheme based on phase-encoded XOR operation. The proposed scheme encrypts a gray-level image by slicing an original image and combining with XORed images which resulted from phase-encoded XOR operations between sliced images and phase-encoded binary random images. Then we produce an encrypted image by combining only XORed images and a key image by only phase-encoded binary random images. The encrypted image and key image are converted into encrypted data and key data by a phase-encoding method. The merits are that the proposed encryption scheme can basically fulfill a high-level encryption using a full phase encryption scheme which has nonlinear and invisible characteristics. The scheme also improves security by encrypting the phase information before full phase encryption. The decryption system based on the principle of interference between a reference wave and a direct pixel-to-pixel mapping image of encrypted data with key data can be simply implemented using a phase-visualization system. Simulation results indicate that our proposed encryption scheme is effective and simple for a gray-scale image and optical decryption system.