Wind lidars can be used on wind turbines to monitor the inflow for power curve verification and for control purposes. In these applications, the lidar is most often placed on the nacelle behind the rotating blades, which occasionally intercept the line-of-sight measurements, resulting in decreased data availability or biased wind measurements. Distinguishing the wind from the blade signals is challenging for continuous-wave Doppler lidar observations. Here, we present a method that provides a more effective filtering than a typical filter relying on the strength of the backscattered signal. The method proposed is based on modelling the radial speed contribution generated by the wind turbine blades, and we present the results of a case study using a scanning wind lidar installed on the nacelle of an 850 kW wind turbine. We show that using the methodology proposed, we can optimize the identification of wind measurements, and thus, the data reliability of wind-turbine-mounted continuous-wave Doppler lidars is enhanced. Furthermore, the method is useful also for assessing the location and the alignment of a nacelle wind lidar in relation to a wind turbine’s rotor, which improves the accuracy of the inflow data and allows for a more efficient monitoring of the performance of a wind turbine.