Due to the availability of various photo editing tools, intruders can tamper with an image very easily. So, various watermarking and tamper detection approaches have been proposed by researchers. Basically, tamper detection techniques focus on embedding the watermark, extracting the water mark, and identifying the tampered regions. But it is very important that the tampered pixels should also be corrected. We bring forward an image watermarking technique for tamper detection and correction using remainder value differencing (RVD) and extended Hamming code (EHC). It operates on a pixel group of size 2 × 2. Watermark bits (WBs) are generated from four most significant bits of the pixels in a pixel group by EHC and concealed in four lower bit planes by the principle of RVD. The WBs are extracted at the receiver along with the identification of tampered pixels. The tampered pixels are corrected by the developed correction logic. As the principle of RVD is used, precautions are taken to avoid the fall-off boundary problem. The efficacy of this technique is accessed through various quality metrics. It is noted that it performs better than the existing techniques. The recorded peak signal-to-noise ratio value is 45.49 dB with structural similarity value 0.9889. The tampered pixels are identified and corrected.