Abstract: Plenty of continuous spectral information in hyperspectral image can not easy to be availably kept by traditional compression method and this paper introduces vector quantization compression technology applied in hyperspectral data to hold the spectral information.Two critical technology including designing codebook and searching codeword are researched，and improved method especially applied in hyperspectral image is proposed.The vector quantization algorithm to hyperspectral image researched in the paper has been programmed and implemented.The result of the experiment based on AVIRIS date with different bands combined，which includes compression rate，speed and distortion rate，shows that the vector quantization algorithm has obvious impact to hyperspectral image data.