Holographic communication is a three-dimensional (3D) video communication technology based on computer-generated holograms (CGHs) which has the potential to give users a more realistic visual perception. As this is an emerging field, the encrypted encoding and decoding methods in holographic communication have not been widely studied. In this work, a watermarking and encryption method for holographic communication is proposed. A watermark is inserted into the original image using the discrete cosine transform before the calculation of the CGH, while a secret key is employed to produce the encrypted CGH during the holographic calculation. Through the proposed watermarking and encryption method, the signal of holographic communication is difficult to decrypt. Even if the signal is decrypted, the source of the leak is easy to trace due to the existence of the watermark. The watermarking and encryption method can provide a practical solution for the privacy protection and copyright protection of 3D video communication.