The Atmospheric Infrared Sounder (AIRS) on the EOS Aqua Spacecraft has demonstrated forecast improvement when assimilated into the operational forecast system at National Weather Prediction (NWP) centers worldwide. AIRS is also used extensively for observing processes used in climate models and validating climate model parameterization of these processes. Despite the fact that there is still much improvement to be gained from AIRS and its follow-on systems CrIS on NPOESS and IASI on MetOp, we are now beginning to realize that the full potential of hperspectral sounders cannot be realized due to the limitations imposed by low spatial resolution.. There are several regions where the low spatial resolution limits the AIRS utility. Despite effective use of “cloud clearing”, the combination of the AMSU 45 km footprints with the AIRS 13 km footprints have limited accuracy near the boundary layer due to the imperfect nature of the cloud clearing. A compounding effect occurs over land where the high variability of the surface emissivity and the high microwave surface sensitivity of the AMSU channels contributes to reduced sensitivity in the boundary layer atmosphere. It is in this boundary layer that the weather and climate models are the weakest and would benefit most from higher spatial resolution. Finally, climate and weather models are improving in spatial resolution. Weather forecasters and climate scientists argue the need for higher spatial resolution as soon as possible. We present the case for the need for hyperspectral IR observations with higher spatial resolution by examining AIRS 13 km data compared to higher spatial resolution systems like MODIS, and present expected improvements in accuracy of the standard data products from AIRS with a higher spatial resolution system. We also present the design concept called the Advanced Remote-sensing Imaging Emission Spectrometer (ARIES) which implements AIRS-like spectral resolution and signal-to-noise ratio with spatial resolution of MODIS, and discuss the technical readiness of this concept.