A prototype fiber-based imaging spectrometer was developed to provide snapshot hyperspectral imaging tuned for biomedical applications. The system is designed for imaging in the visible spectral range from 400 to 700 nm for compatibility with molecular imaging applications as well as satellite and remote sensing. An 81 × 96 pixel spatial sampling density is achieved by using a custom-made fiber-optic bundle. The design considerations and fabrication aspects of the fiber bundle and imaging spectrometer are described in detail. Through the custom fiber bundle, the image of a scene of interest is collected and divided into discrete spatial groups, with spaces generated in between groups for spectral dispersion. This reorganized image is scaled down by an image taper for compatibility with following optical elements, dispersed by a prism, and is finally acquired by a CCD camera. To obtain an (x, y, λ) datacube from the snapshot measurement, a spectral calibration algorithm is executed for reconstruction of the spatial-spectral signatures of the observed scene. System characterization of throughput, resolution, and crosstalk was performed. Preliminary results illustrating changes in oxygen-saturation in an occluded human finger are presented to demonstrate the system's capabilities.