Hyperspectral images (HSIs) denoising is a critical research area in image processing duo to its importance in improving the quality of HSIs, which has a negative impact on object detection and classification and so on. In this paper, we develop a noise reduction method based on principal component analysis (PCA) for hyperspectral imagery, which is dependent on the assumption that the noise can be removed by selecting the leading principal components. The main contribution of paper is to introduce the spectral spatial structure and nonlocal similarity of the HSIs into the PCA denoising model. PCA with spectral spatial structure can exploit spectral correlation and spatial correlation of HSI by using 3D blocks instead of 2D patches. Nonlocal similarity means the similarity between the referenced pixel and other pixels in nonlocal area, where Mahalanobis distance algorithm is used to estimate the spatial spectral similarity by calculating the distance in 3D blocks. The proposed method is tested on both simulated and real hyperspectral images, the results demonstrate that the proposed method is superior to several other popular methods in HSI denoising.