In view of the characteristics of hyperspectral image processing system such as high data throughput, high processing speed and large memory capacity, an embedded hyperspectral image processing system based on DSP&FPGA was designed, which adopted USB interface as transmission, and selected TI’s TMS320C6000 DSP and Altera’s Cyclone II series FPGA. Firstly, the general block diagram of hardware implementation is given; secondly the chips used are introduced, the circuit connecting of FPGA and the working principles of system are described in detail. Finally the system is verified by taking advantage of hyperspectral image target recognition algorithm.