As the traditional encryption method is slow and inefficient in image encryption. The image encryption algorithm using low-dimensional chaos is fast. But it is insecure because of the short period and small key space. To overcome this problem, a hyperchaotic cellular automaton image encryption algorithm is proposed. The hyperchaotic system is disturbed by the Logistic map to avoid the degeneration of digitization. A pseudorandom sequence generator is designed to construct the dynamic permutation box P-box and dynamic substituted box S-box. A novel invertible cellular automaton is constructed to confuse the plaintext. The image is substituted by the dynamic S-box firstly. Then it is encrypted by the invertible cellular automaton. Finally, the P-box is used to permutate the rows and the cols. The short period of the chaotic system and the limited key space of the cellular automaton are avoided by joining them together, so that the security can be enhanced greatly. The randomness of the pseudorandom sequence is tested. The encryption efficiency, image lossless, key sensitivity and the ability against attacks are simulated and analyzed. The results show that the proposed scheme is more secure and efficient.