Huge　amounts　of　data　of　hyperspectral　images　have　become　a　great　challenge　to　data　storage　and　transmission.　In　the　mean　time,　as　this　kind　of　image　is　used　extensively　and　any　information　shouldn＇t　be　lost　during　compression,　the　lossless　compression　method　seems　to　be　essential.　Without　an　efficient　compression　scheme,　the　application　of　hyperspectral　images　will　be　limited.　Trellis　coded　quantization　(TCQ)　uses　the　expanded　signal　set,　set　partitioning　and　trellis　state　transferring　ideas　from　trellis　coded　modulation　(TCM).　The　mean　squared　error　(MSE)　performance　of　TCQ　is　excellent　with　modest　computing　complexity.　At　present　TCQ　is　often　used　for　image　lossy　compression.　In　this　paper,　we　aim　to　develop　TCQ　scheme　to　compress　hyperspectral　images　losslessly　taking　advantage　of　the　characteristics　of　hyperspectral　data　for　compression.　A　scheme　utilizing　wavelet　transform　and　trellis　coded　quantization　is　presented.　Experiment　results　show　that　the　method　presented　in　this　paper　has　good　performance.　©　2005　IEEE.