Purpose: A multispectral algorithm for detection and differentiation of defective (defects on apple skin) and normal Red Delicious apples was developed from analysis of a series of hyperspectral line-scan images. Methods: A fast line-scan hyperspectral imaging system mounted on a conventional apple sorting machine was used to capture hyperspectral images of apples moving approximately 4 apples per second on a conveyor belt. The detection algorithm included an apple segmentation method and a threshold function, and was developed using three wavebands at 676 nm, 714 nm and 779 nm. The algorithm was executed on line-by-line image analysis, simulating online real-time line-scan imaging inspection during fruit processing. Results: The rapid multispectral algorithm detected over 95% of defective apples and 91% of normal apples investigated. Conclusions: The multispectral defect detection algorithm can potentially be used in commercial apple processing lines.