Abstract: Based on information collected in aspect of development of hyperspectral technology, geological application and its major progress, this paper introduced the current status and major progress of this technology in and abroad, as well as its geologic application. In combination of solved examples, this paper analyzed the advantages and prospects of hyperspectral remote sensing in terms of mineral recognition and mapping, lithologic mapping, mineral resource prospecting, mining environment monitoring and leakage monitoring of oil and gas, meanwhile, it pointed out problems remained and future trend for this technology.