This paper presents findings from a spaceborne Earth observation experiment utilizing a novel, ultra-compact hyperspectral imaging camera aboard a 3U CubeSat. Leveraging the Offner optical scheme, the camera’s hyperspectrometer captures hyperspectral images of terrestrial regions with a 200 m spatial resolution and 12 nanometer spectral resolution across a 400 to 1000 nanometer wavelength range, covering 150 channels in the visible and near-infrared spectrums. The hyperspectrometer is specifically designed for deployment on a 3U CubeSat nanosatellite platform, featuring a robust all-metal cylindrical body of the hyperspectrometer, and a coaxial arrangement of the optical elements ensures optimal compactness and vibration stability. The performance of the imaging hyperspectrometer was rigorously evaluated through numerical simulations prior to construction. Analysis of hyperspectral data acquired over a year-long orbital operation demonstrates the 3U CubeSat’s ability to produce various vegetation indices, including the normalized difference vegetation index (NDVI). A comparative study with the European Space Agency’s Sentinel-2 L2A data shows a strong agreement at critical points, confirming the 3U CubeSat’s suitability for hyperspectral imaging in the visible and near-infrared spectrums. Notably, the ISOI 3U CubeSat can generate unique index images beyond the reach of Sentinel-2 L2A, underscoring its potential for advancing remote sensing applications.