Dimensionality reduction of images with high-dimensional nonlinear structure is the key to improving the recognition rate. Although some traditional algorithms have achieved some results in the process of dimensionality reduction, they also expose their respective defects. In order to achieve the ideal effect of high-dimensional nonlinear image recognition, based on the analysis of the traditional dimensionality reduction algorithm and refining its advantages, an image recognition technology based on the nonlinear dimensionality reduction method is proposed. As an effective nonlinear feature extraction method, the nonlinear dimensionality reduction method can find the nonlinear structure of datasets and maintain the intrinsic structure of data. Applying the nonlinear dimensionality reduction method to image recognition is to divide the input image into blocks, take it as a dataset in high-dimensional space, reduce the dimension of its structure, and obtain the low-dimensional expression vector of its eigenstructure so that the problem of image recognition can be carried out in a lower dimension. Thus, the computational complexity can be reduced, the recognition accuracy can be improved, and it is convenient for further processing such as image recognition and search. The defects of traditional algorithms are solved, and the commodity price recognition and simulation experiments are carried out, which verifies the feasibility of image recognition technology based on the nonlinear dimensionality reduction method in commodity price recognition.