Satellite image processing is an important area of research nowadays due to its wide range of applications. Researchers and scientists have paid attention to satellite image processing so as to capture information from them. Satellite image analysis poses a great challenge to the researchers due to high variability, low resolution and big data of the satellite images. A lot of work has been done for satellite image analysis that covers the research from classification of hand crafted features to applying high performance computing on satellite images. The researchers have achieved great success in satellite image analysis. But a systematic review, which will lead researchers to identify the problem and to contribute in this field, is missing. In the presented chapter, an attempt has been made to present a detailed review of the various steps of satellite image processing, classification and available databases. This chapter will give an impetus towards further research in this field and will provide a baseline to research in the field of satellite image processing.