In this paper, we propose interband vector quantization of remotely sensed satellite image using edge region compensation. This method classifies each pixel vector considering spectral reflection characteristics of satellite image data. For each class, we perform classified intraband VQ and classified interband VQ to remove intraband and interband redundancies, respectively. In edge region case, edge region is compensated using class information of neighboring blocks and gray value of quantized reference band. Then we perform classified interband VQ to remove interband, redundancy using compensated class information, effectively. Experiments on remotely sensed satellite image show that coding efficiency of the proposed method is better than that of the conventional method.