Hidden field equation (HFE) multivariable cryptosystems were first suggested by Patarin. Kipnis and Shamir showed that to make the cryptosystem secure, a special parameter D of any HFE cryptosystem can not be too small. Consequently Kipnis, Patarin and Goubin proposed an enhanced variant of the HFE cryptosystem by combining the idea of Oil and Vinegar construction with the HFE construction. Essentially they “perturb” the HFE system with some external variables. In this paper, we will first present a new cryptanalysis method for the HFEv schemes. We then use the idea of internal perturbation to build a new cryptosystem, an internally perturbed HFE cryptosystem (IPHFE).