Edge detection is a fundamental issue in image analysis. Due to the presence of speckle, which can be modeled as a strong, multiplicative noise, edge detection in synthetic aperture radar (SAR) images is extremely difficult, and edge detectors developed for optical images are inefficient. Several robust operators have been developed for the detection of isolated step edges in speckled images. We propose a new step-edge detector for SAR images, which is optimal in the minimum mean square error (MSSE) sense under a stochastic multiedge model. It computes a normalized ratio of exponentially weighted averages (ROEWA) on opposite sides of the central pixel. This is done in the horizontal and vertical direction, and the magnitude of the two components yields an edge strength map. Thresholding of the edge strength map by a modified version of the watershed algorithm and region merging to eliminate false edges complete an efficient segmentation scheme. Experimental results obtained from simulated SAR images as well as ERS-1 data are presented.