This paper deals with sparse signal reconstruction by designing a discrete-time projection neural network. Sparse signal reconstruction can be converted into an L1 -minimization problem, which can also be changed into the unconstrained basis pursuit denoising problem. To solve the L1 -minimization problem, an iterative algorithm is proposed based on the discrete-time projection neural network, and the global convergence of the algorithm is analyzed by using Lyapunov method. Experiments on sparse signal reconstruction and several popular face data sets are organized to illustrate the effectiveness and performance of the proposed algorithm. The experimental results show that the proposed algorithm is not only robust to different levels of sparsity and amplitude of signals and the noise pixels but also insensitive to the diverse values of scalar weight. Moreover, the value of the step size of the proposed algorithm is close to 1/2, thus a fast convergence rate is potentially possible. Furthermore, the proposed algorithm achieves better classification performance compared with some other algorithms for face recognition.