A method which uses optical satellite multispectral camera with five spectra combinations (MCFS) image in quantitative detection of satellite flutter and point spread function (PSF) space variant blurring model method for flutter compensation are proposed. The working principles of time delay integration (TDI) charge coupled device (CCD) and the influence of satellite flutter on the TDICCD image are introduced. The method of using MCFS image in satellite flutter quantitative detection is proposed. In the flutter detection technology, the robust phase correlation scan angular correlation matching algorithm, which can achieve 1/50 pixel registration precision, is used for registration between bands. The PSF space variant blurring model method is used for image restoration. Beijing regional image from ZY-3 is used in experiments and carried out with definition, details energy, edge energy, and contrast as objective evaluation index. Results show that the objective evaluation index of restoration image is improved about 2 times. At the same time, the same regional orthophoto from SPOT5 is used for compared experiment in objective evaluation index. Comparative results also preliminarily show the evidence of better restoration of satellite flutter reduction.