This paper proposes an edge computing-based video coding implementation on an Earth observation satellite (SAT-video coding), which can encode video using limited resources and the power of mini/microsatellites. SAT-video coding proposes a hardware-related quantization (Q) function, hardware reduction of the motion estimation (ME) method, and simplified entropy coding (EC), which reduces the computation complexity. The hardware-related Q reduces hardware resource and power consumption by 72% and 55%, respectively, compared with traditional Q implementation. The hardware reduction of ME reduces resource use compared with regular ME implementation (59 % of lookup tables [LUTs] and 79% of Registers). The total number of LUTs used for the simplified EC function is also much lower than other EC hardware implementations. The SAT-video encoder IP uses fewer hardware resources, and the power consumption is estimated at 0.0894 W at a high working frequency (125 MHz). The SAT-video encoding speed is 18.95 frames per second for 2560×2560 video. Therefore, the proposed SAT-video coding is an edge computation suitable for micro/minisatellites. The coding efficiency records the highest compression ratio at 33.8, with a peak signal-to-noise ratio of 34.46 dB. With the important task of designing edge computing based on satellite video encoding, these are adequate values for remote sensing video.INDEX TERMS Video compression, remote sensing video, hardware acceleration, satellite.