In order to solve the problem of the effect of noise on the unmixing precision and the insufficient utilization of spectral and spatial information in the actual Hyperspectral Unmixing (HU), an improved unmixing algorithm based on spectral distance clustering for group sparse nonnegative matrix factorization was proposed. Firstly, the HYperspectral Signal Identification by Minimum Error (Hysime) algorithm for the large amount of noise existing in the actual hyperspectral image was introduced, and the signal matrix and the noise matrix were estimated by calculating the eigenvalues. Then, a simple clustering algorithm based on spectral distance was proposed and used to merge and cluster the adjacent pixels generated by multiple bands, whose spectral reflectance distances are less than a certain value, to generate the spatial group structure. Finally, sparse non-negative matrix factorization was performed on the basis of the generated group structure. Experimental analysis shows that for both simulated data and actual data, the algorithm produces smaller Root-Mean-Square Error (RMSE) and Spectral Angle Distance (SAD) than traditional algorithms, and can produce better unmixing effect than other advanced algorithms.