This paper presents an algorithm that generates a scale-space representation of hyperspectral imagery using Algebraic Multigrid (AMG) solvers. The scale-space representation is obtained by solving with AMG a vector-valued anisotropic diffusion equation, with the hyperspectral image as its initial condition. AMG also provides the necessary structure to obtain a hierarchical segmentation of the image. The scale space representation of the hyperspectral image can be segmented in linear time complexity. Results in the paper show that improved segmentation is achieved. The proposed methodology to solve vector PDEs can be used to extend a number of techniques currently being developed for the fast computation of geometric PDEs and its application for the processing of hyperspectral and multispectral imagery.© (2007) COPYRIGHT SPIE--The International Society for Optical Engineering. Downloading of the abstract is permitted for personal use only.