Spectral analysis of remotely sensed images provide the required information accurately even for small targets. Hence Hyperspectral imaging is being used which follows the technique of dividing images into bands. These Hyperspectral images find their applications in agriculture, biomedical, marine analysis, oil seeps detection etc. A Hyperspectral image contains many spectra, one for each individual point on the sample’s surface and in this project the required target on the Hyperspectral image is going to be detected and classified. Hyperspectral remote sensing image classification is a challenging problem because of its high dimensional inputs, many class outputs and limited availability of reference data. Therefore some powerful techniques to improve the accuracy of classification are required. The objective of our project is to reduce the dimensionality of the Hyperspectral image using Principal Component Analysis followed by classification using Neural Network. The project is to be implemented using MATLAB.