With the expanding needs for secure communication over transmission channels, surveillance and protecting sensitive data in terms of confidential images, the requirements for efficient image encryption mechanisms is widely growing. While many of the techniques may not give the desired results when used individually, a variety of researches propose a hybrid setup for encrypting images, layering two or more approaches to achieve the desired results, while at the same time, treating the vulnerabilities present in the existing models. This research also aims to modify the working mechanism of a well-known, yet vulnerable stream cipher, called the RC4, with an addition layering of randomness via Arnold’s Cat Map, a secure key generation mechanism and a proposed modification in the keystream generation process, in order to counter the vulnerabilities present in the existing model. All result metrics indicate that the proposed scheme diminishes the known vulnerabilities that exist in classical RC4, thus presenting a satisfactory image security performance.