An improved biblock zero tree compression coding (IBBZTC) method with predictive binary scalar quantization and a compression ratio formula is given. The IBBZTC way is applied for hyperspectral data compression. This method is characterized by ZTC′s high compression ratio, real time implementing, and advantages of higher coding/decoding speed and real time transmission. The experimental results show that the total compression performance of IBBZTC outperforms the KL transformation joint photographic experts group (KLT JPEG), wavelet transform vector quantization (WT VQ), wavelent transform zero tree vector quantization (WT ZTVQ) and biblock zero tree coding (BBZTC) compression methods without transmitting residue error. Compression rate is 190 times, and peak SNR is above 30 dB.