A reversible data hiding (RDH) method with prediction error histogram (PEH) decomposition and hybrid dimensional histogram modification is proposed. First, a global one-dimensional (1D) PEH is generated by pixel-based pixel value ordering predictor. The proposed method fully utilizes the pixels inside the range of the minimum and maximum of neighbors to decompose 1D-PEH into several sub 1D-PEHs. Then, each sub 1D-PEH is separated into two parts. The part with small-magnitude is used to construct a reduced two-dimensional (2D) PEH, whereas the rest is shifted for reversibility. Finally, data embedding is performed by modifying each reduced 2D-PEH to reduce distortion. Experimental results demonstrates that the proposed method outperforms some high-fidelity RDH methods.