Based on the theory of Euler’s equations, this paper constructs a novel five-dimensional Hamiltonian conservative hyperchaotic system with the aim of systematically exploring and analyzing its dynamic characteristics, while validating its potential application value in the field of information security. A comprehensive and multi-faceted dynamic analysis of the new system is conducted, encompassing energy variations, equilibrium point distributions, Poincaré section structures, and the computation of Lyapunov exponents. The analysis reveals that the system exhibits excellent chaotic properties and demonstrates remarkable conservative hyperchaotic behavior across a wide range of initial values and parameters. Notably, a significant enhancement in the maximum Lyapunov exponent is observed, further highlighting the system’s potential and promising applications in information security. Additionally, by adjusting the initial values, the coexistence of nested phenomena across multiple energy levels is observed, providing intriguing perspectives for further investigation of the system. Finally, this paper proposes an image encryption scheme based on this system and is successfully applied in the field of image encryption. Experiments show that compared with the information entropy of similar documents in the past four years, the information entropy of this scheme increased by 0.02% on average, and the highest value reached 7.9995, which confirmed that the encryption algorithm has excellent confidentiality performance and provided new ideas and methods for the development of the field of information security.