Summary: We propose a new context-adaptive arithmetic coding (CAAC) scheme for lossless bit rate reduction of parametric stereo (PS) in enhanced aacPlus. Based on the probability analysis of stereo parameters indexes in PS, we propose a stereo band-dependent CAAC scheme for PS. We also propose a new coding structure of the scheme which is simple but effective. The proposed scheme has normal and memory-reduced versions, which are superior to the original and conventional schemes and guarantees significant bit rate reduction of PS. The proposed scheme can be an alternative to the original PS coding scheme at low bit rate, where coding efficiency is very important.