According to the information optics theory, a novel watermarking method based on Fourier-transformed digital holography and singular value decomposition (SVD) is proposed in this paper. First of all, a watermark image is converted to a digital hologram using the Fourier transform. After that, the original image is divided into many non-overlapping blocks. All the blocks and the hologram are decomposed using SVD. The singular value components of the hologram are then embedded into the singular value components of each block using an addition principle. Finally, SVD inverse transformation is carried out on the blocks and hologram to generate the watermarked image. The watermark information embedded in each block is extracted at first when the watermark is extracted. After that, an averaging operation is carried out on the extracted information to generate the final watermark information. Finally, the algorithm is simulated. Furthermore, to test the encrypted image’s resistance performance against attacks, various attack tests are carried out. The results show that the proposed algorithm has very good robustness against noise interference, image cut, compression, brightness stretching, etc. In particular, when the image is rotated by a large angle, the watermark information can still be extracted correctly.