A novel synthetic aperture radar (SAR) image de-nois-ing method based on the local pixel grouping (LPG) principal component analysis (PCA) and guided filter is proposed. This method contains two steps. In the first step, we process the noisy image by coarse filters, which can suppress the speckle effectively. The original SAR image is transformed into the addi-tive noise model by logarithmic transform with deviation correc-tion. Then, we use the pixel and its nearest neighbors as a vec-tor to select training samples from the local window by LPG based on the block similar matching. The LPG method ensures that only the similar sample patches are used in the local statist-ical calculation of PCA transform estimation, so that the local features of the image can be well preserved after coefficients shrinkage in the PCA domain. In the second step, we do the guided filtering which can effectively eliminate small artifacts left over from the coarse filtering. Experimental results of simulated and real SAR images show that the proposed method outstrips the state-of-the-art image de-noising methods in the peak signal-to-noise ratio (PSNR), the structural similarity (SSIM) index and the equivalent number of looks (ENLs), and is of perceived im-age quality.