A new chaotic system is developed for creating S-Box and image encryption algorithm. Chaos based random number generator is designed with the help of the new chaotic system. NIST tests are run on generated random numbers to verify randomness. A new S-Box design algorithm is developed to create the chaos based S-Box to be utilized in encryption algorithm and performance tests are made. The new developed S-Box based image encryption algorithm is introduced and image encryption application is carried out. To show the quality and strong of the encryption process, security analysis are performed and compared with the AES and chaos algorithms.