The existing watermarking techniques do not give importance on tamper correction. This article proposes a watermarking technique with tamper identification and correction. This technique first splits the image into 2×2 pixel blocks and works on the 4 pixels of the block. The 4 most significant bits (MSBs) of a pixel form the quotient and the 4 least significant bits (LSBs) of a pixel form the remainder. The average value of the 4 quotients of the 4 pixels in a block is computed and represented in 4-bit binary. These 4 binary bits are the watermark bits (WBs). Furthermore, a logistic map is used to generate 4 binary bits. The WBs and logistic map bits are passed into exclusive-or operation to obtain the 4 recovery bits (RBs). The first 2 WBs are camouflaged in one of the remainder by LSB substitution. The remaining 2 WBs and 4 RBs are camouflaged in the remaining 3 remainders by modulus function-based logic. While extracting the WBs, the tampered pixels of a block can be recognized and correction mechanism is used to get its corrected value. The efficacy of this watermarking scheme is estimated by various metrics like peak signal-to-noise ratio (PSNR), hiding capacity (HC), structural similarity index (SSIM), and accuracy (ACC). The estimated HC value is 2.0 bits per pixel with a PSNR value of 45.47 decibels. This PSNR value is more than the existing techniques. The SSIM value is 0.9883 and ACC value is 1.0. The ACC value is more than the existing techniques.