Combining the strong anti-interference advantages of OFDM technology and the time-frequency analysis features of fractional Fourier transform (FFT), we apply OFDM as the coding modulation technology for digital watermarking. Based on the Arnold scrambling and OFDM coding, an innovative DFRFT digital watermarking algorithm is proposed. First, the watermark information is subjected to the Arnold scrambling encryption and OFDM coding transform. Then it is embedded into the FFT domain amplitude. The three parameters of scrambling iterations number, t, FFT order, p, and the watermark information embedded position, L, are used as keys, so that the algorithm has high safety. A simulation shows that the algorithm is highly robust against noise, filtering, compression, and other general attacks. The algorithm not only has strong security, but also makes a good balance between invisibility and robustness. But the possibility of using OFDM technique in robust image watermarking has drawn a very little attention.