This paper reviews progress in hyperspectral remote sensing (HRS) in China, focusing on the past three decades. China has made great achievements since starting in this promising field in the early 1980s. A series of advanced hyperspectral imaging systems ranging from ground to airborne and satellite platforms have been designed, built, and operated. These include the field imaging spectrometer system (FISS), the Modular Airborne Imaging Spectrometer (MAIS), and the Chang'E-I Interferometer Spectrometer (IIM). In addition to developing sensors, Chinese scientists have proposed various novel image processing techniques. Applications of hyperspectral imaging in China have been also performed including mineral exploration in the Qilian Mountains and oil exploration in Xinjiang province. To promote the development of HRS, many generic and professional software tools have been developed. These tools such as the Hyperspectral Image Processing and Analysis System (HIPAS) incorporate a number of special algorithms and features designed to take advantage of the wealth of information contained in HRS data, allowing them to meet the demands of both common users and researchers in the scientific community.