In data communication, security is the most important issue in today’s world. This project is a combination of stegano graphy and cryptography, which provides a strong backbone for its security. This present work focus is enlightening the technique to secure data or message with authenticity and integrity. In this project work, the secret message is encrypted before the actual embedding process starts. The entire work has done in MATLAB. The hidden message is encrypted using a simple encryption algorithm using secret key and hence it will be almost impossible for the intruder to unhide the actual secret message from the embedded cover file without knowing secret key. Only receiver and sender know the secret key.N-bit LSB substitution technique is used as embedding and extraction method. We propose that this method could be most appropriate for hiding any secret message (text, image, audio, video) in any standard cover media such as image, audio, video files (Harshitha, 2012). And also performance factor such as PSNR, Utilization factor are computed and performance analysis has been made by plotting graph of these factor against no of LSB bits replaced during embedding process.