Among various digital image formats used in daily life, JPEG is the most popular .Therefore, reversible data hiding (RDH) in JPEG images is important and useful for many application such as archive management and image authentication. Reversible data hiding in encrypted images (RDH-EI) are developed most techniques for uncompressed images, this paper provides a separable reversible data hiding protocol for encrypted JPEG bitstreams. Here a JPEG encryption algorithm is first proposed, which enciphers an image to a smaller size and keeps the format compliant to JPEG decoder. After a content owner uploads the encrypted JPEG bitstream to a remote server, a data hider embeds an additional message into the encrypted JPEG bitstream without changing the bitstream size. On the recipient side, the original bitstream can be reconstructed losslessly using an iterative recovery algorithm based on the blockingartifact. Though message extraction and image recovery are separable, anyone who has the embedding key can extract the message from the marked encrypted copy. A random error is introduced to obtain the PSNR and error values of different JPEG images and make a comparative study. A forward error correction technique is used for controlling errors. Experimental results show that the proposed method outperforms a previous work in terms of separation capability, embedding capacity and security.