Coral reefs are one of the most diverse and threatened ecosystems in the world. Corals worldwide are at risk, and in many instances, dying due to factors that affect their environment resulting in deteriorating environmental conditions. Because corals respond quickly to the quality of the environment that surrounds them, corals have been identified as bioindicators of water quality and marine environmental health. The hyperspectral imaging system is proposed as a noninvasive tool to monitor different species of corals as well as coral state over time. This in turn can be used as a quick and non-invasive method to monitor environmental health that can later be extended to climate conditions. In this project, a laboratory-based hyperspectral imaging system is used to collect spectral and spatial information of corals. In the work presented here, MATLAB and ENVI software tools are used to view and process spatial information and coral spectral signatures to identify differences among the coral data. The results support the hypothesis that hyperspectral properties of corals vary among different coral species, and coral state over time, and hyperspectral imaging can be a used as a tool to document changes in coral species and state.