The usage of a hypersonic platform for remote sensing application has promising prospects, especially for hypersonic platform-borne synthetic aperture radar (SAR) imaging. However, the high-speed of hypersonic platform will lead to extreme friction between the platform and air, which will cause the ionization of air. The ionized gas forms the plasma sheath wrapped around the hypersonic platform. The plasma sheath will severely affect the propagation of SAR signal and further affect the SAR imaging. Therefore, hypersonic platform-borne SAR imaging should be studied from a physical perspective. In this paper, hypersonic platform-borne SAR imaging under plasma sheath is analyzed. The SAR signal propagation in plasma sheath is computed using scatter matrix method. The proposed SAR signal model is verified by using a ground experiment system. Moreover, the effect of attenuation caused by plasma sheath on SAR imaging is studied under different SAR parameters and plasma sheath. The result shows that attenuation caused by plasma sheath will degrade the SAR imaging quality and even cause the point and area targets to be submerged into the noise. The real SAR images under plasma sheath also illustrate this phenomenon. Furthermore, by studying imaging results under different SAR and plasma parameters, it can be concluded that the severe degradation of SAR imaging quality appears at condition of high plasma sheath electron density and low SAR carrier frequency. The work in this paper will be beneficial for the study of hypersonic platform-borne SAR imaging and design of hypersonic SAR imaging systems in the future.