With rapid growth in communication techniques and multimedia application, security is becoming more important for multimedia data storage or transmission. Traditional encryption algorithm such as Advance Encryption Standard (AES) and Data Encryption Standard (DES) are not suitable for video data because it caused large computational overhead and reduce the MPEG compression efficiency. The encryption algorithm that has less computation overhead is needed. The proposed algorithm combines encryption process with MPEG video compression. Some modifications of the RC4 algorithm were proposed in this paper to enhance the performance of video encryption algorithm in terms of encryption time, compression ratio and to provide accepted level of the security. The modification of the RC4 algorithm depends on the maximum value of the plain text, chaotic map and circular shift operation. This modification will reduce the number of iteration in the Key scheduling Algorithm (KSA) and make the Pseudo Random Generator Algorithm (PRGA) depend on initial condition of chaotic maps to provide the strong shuffling inside the PRGA. The random rotation technique based on chaotic map is proposed to increase security of MPEG video. This technique depends on the value generated from chaotic map to rotate the Y blocks in I frame. The experimental results indicate that the proposed method provided better encryption times and provides sufficient level of the security. Thus the proposed method is suitable to protect the MPEG video with minimizing the overhead.