Jung and Yoo proposed the first image interpolation-based reversible data hiding algorithm. Although their algorithm achieved superior interpolation results, the embedding capacity was insufficient. Lee and Huang proposed an improved algorithm to enhance the embedding capacity and the interpolation results. However, these algorithms present limitations to magnify the original image to any resolution and pixels in the boundary region of the magnified image are poorly manipulated. Furthermore, the capacity and the image quality can be improved further. This study modifies the pixel mapping scheme and adopts a bilinear interpolation to solve boundary artifacts. The modified reference pixel determination and an optimal pixel adjustment process can effectively enhance the embedding capacity and the image quality. The experimental results show our proposed algorithm achieves a higher embedding capacity under acceptable visual distortions, and can be applied to a magnified image at any resolution. Our proposed technique is feasible in reversible data hiding.