A new encrypted holographic watermark algorithm based on image feature area in transform domain was proposed. The host image was separated into foreground and background areas based on K-means clustering, and the safety of watermark was improved by using double random phase encryption. Through DCT, the encrypted holographic watermark was embedded into middle frequency coefficients, which both suits the HVS and robustness, and it is a blind watermark algorithm. Results showed that this algorithm can resist all kinds of attacks; the reconstructed watermark is clear. It was concluded that the watermark has strong invisibility, robustness and safety.