Besides the challenges posed by the complex optical properties of water, underwater spectral imaging face significant issues, including system bulkiness, optical complexity, and high spectral resolution requirement. This study introduces a compact staring-type underwater spectral imaging system designed to overcome these limitations. Featuring a 6-channel rotary spectral camera, the system is optimized for optical simplicity, and spectral efficiency. It employs a k-Nearest Neighbor (KNN)-based spectral reconstruction method to substantially enhance spectral resolution. Auto-focusing and image registration techniques, utilizing the Tenengrad function and Scale-Invariant Feature Transform (SIFT) feature points, ensure sharp and aligned multi-channel imagery. Experimental validation demonstrates the system’s capability to accurately reconstruct spectral reflectance data across the 400 nm to 700 nm band, significantly increasing spectral resolution from 6 to 31 channels. The spectral reflectance reconstruction results, achieving an average Root Mean Square Error (RMSE) of 0.0651 and Goodness of Fit Coefficient (GFC) of 0.9871, highlight the system’s efficiency in precise spectral analysis. This advancement in spectral resolution and adaptability to diverse underwater applications marks a significant leap forward in underwater observation and monitoring through spectral imaging.