This paper proposes a high capacity data hiding method using modulus function of pixel-value differencing (PVD) and least significant bit (LSB) replacement method. Many novel data hiding methods based on LSB and PVD methods were presented to enlarge hiding capacity and provide an imperceptible quality. A small difference value for two consecutive pixels is belonged to a smooth area and a large difference one is located on an edge area. In our proposed method, the secret data are hidden on the smooth area by the LSB substitution method and PVD method on the edge area. From the experimental results, the proposed method sustains a higher capacity and still a good quality compared with other LSB and modified PVD methods.