Traditional biometric system stores the biometric template in the database directly. While the biometric template is unique and permanent, it can’t be used anymore if stolen. To solve this problem, we propose a palm vein recognition algorithm with pseudo image storage, which doesn’t input any key information and doesn’t store original palm vein template. In the stage of register, the system collects palm vein images under near-infrared light. Then the collected image is stored in the form of pseudo image. In the stage of recognition, the pseudo image is decrypted and the feature is extracted. The feature is matched with input image and the authentication result is given. The proposed algorithm is tested on PolyU database, CASIA database, and self-built database. The experimental results show that in sample range of 300, the proposed algorithm can reach the equal error rates of 0.4135%, 0.5576%, and 0.4744% and recognition times of 325.0740 ms, 316.0800 ms, and 322.6530 ms for the above databases. The algorithm has practical value for security and checking-in occasions in certain sample range.