To enhance the accuracy of tamper localization and the performance of recovery, the paper proposes refining-localization-based image authentication and recovery scheme using iterative compensation mechanism. The authentication algorithm contains basic authentication and refining authentication. It fuses the twice authentication results and take some post-processing measures based on connected tampered region to obtain the accuracy authentication result. According to embedding capacity, the recovery scheme uses iterative compensation mechanism to recover the tampered pixels. Theoretical analysis and simulation results show that the proposed algorithm can improve the accuracy of tamper localization and the probability of recovering the tampered pixels.