Rare earth elements (REEs) play an important role in emerging renewable energy technology, the production of advanced materials, energy conservation, and high-end manufacturing industries, making them an irreplaceable strategic resource. The diagnostic spectral absorption features of REEs in the visible and near-infrared spectrum can be effectively used for identifying the occurrences of REEs on the Earth’s surface. This study systematically compared three airborne hyperspectral sensors—HyMap, CASI-1500h, and AisaFENIX 1K—for detecting REEs in the Bayan Obo area of Inner Mongolia, China. The CASI-1500h imagery performed most effectively in identifying the locations of REEs among the three sensors evaluated here. Additionally, this study proposed a hyperspectral workflow for REE identification, which enabled the detection of REE-bearing minerals regardless of the host rock types—including carbonatites and associated dikes, fenite-syenites, and metamorphic feldspar-quartz sandstone. Laboratory-based spectroscopy and mineral chemistry analyses indicated that the absorption features of the REE-bearing mineral monazite within the 400–1000 nm range can be ascribed to Nd³⁺. This study demonstrates the potential of airborne hyperspectral technology for efficient and large-scale exploration of REE deposits.