Image recognition of ethnic minority costumes is helpful for people to understand, carry forward, and inherit national culture. Taking the minority clothing image as the research object, the image enhancement and threshold segmentation are completed; the principal component features of the minority clothing image are extracted by PCA method; and the image matching degree is obtained according to the principle of minimizing the Euclidean distance. Finally, the calculation process of the PCA method is optimized by a wavelet transform algorithm to realize the recognition of popular elements of minority traditional clothing. The comparative experimental results show that the PCA + BP neural network algorithm is better than the other two recognition algorithms in recognition rate and recognition time.