Abstract-A new SAR radiometric terrain correction method was proposed to reduce the terrain effects in sloped regions. Based on this method, a procedure for polarimetric SAR terrain effect reduction was proposed, including geometric correction, shadow detection, radiometric terrain correction, and polarization orientation angle shift compensation. Experiments using RADARSAT-2 polarimetric SAR data of the Three Gorges Area, China demonstrated the effectiveness of the proposed radiometric terrain correction method. Both visual and quantitative analyses showed that after the proposed radiometric terrain correction method was applied, the contrast between different slopes that caused by local incidence angle differences, foreshortening, and layover was significantly reduced. The difference of backscattering intensity on slopes facing the radar sensor and facing away from the sensor was reduced from 12.5 dB before radiometric correction to 1.3 dB. The overall accuracy of land use/land cover classification was improved by 11.2 percent using the terrain corrected polarimetric SAR data.