Today, the Internet of Things (IoT) is rapidly expanding in areas such as industry, healthcare, and agriculture. It shows that this growth also brings increasingly serious security issues. The security of digital image is a significant challenge in the digital era. Several research efforts have been conducted to secure digital images. Image encryption and compression are promising solutions to ensure secure and fast data transmission over IoT ecosystem. This article suggests a robust method for protecting digital images through a combination of the Piecewise Linear Chaotic Map (PWLCM), a modified AES algorithm, and the Haar Wavelet Transform (HWT). The proposed approach involves of two stages including HWT compression and encryption using a modified AES algorithm. Firstly, a compression technique is performed using the Haar Wavelet Transform. Secondly, the compressed image is encrypted by the modified AES algorithm. The goal is to transform the image into coefficients, reorder them chaotically for compression, and then encrypt the compressed data using a dynamic S-box derived from the chaotic sequence. Several tests are conducted to Medical images to evaluate the performance of the proposed method. Simulation results indicate that in a resource-limited IoT environment, the suggested model performs better in terms of data secrecy and compression efficiency.