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In this paper, a new 4D hyperchaotic system is generated. The dynamic properties of attractor phase space, local stability, poincare section, periodic attractor, quasi-periodic attractor, chaotic attractor, bifurcation diagram, and Lyapunov index are analyzed. The hyperchaotic system is normalized and binary serialized, and the binary hyperchaotic stream generated by the system is statistically tested and entropy analyzed. Finally, the hyperchaotic binary stream is applied to the gray image encryption. The histogram, correlation coefficient, entropy test, and security analysis show that the hyperchaotic system has good random characteristics and can be applied to the gray image encryption.