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The diffractor grating is a new version of the microwave passive repeater developed to improve the transmission qualities of links utilizing mountain diffraction. It has special advantages in the high-frequency region, as well as in the 11-Gc/s common carrier band, where the construction of a large-aperture flat reflector encounters difficulties and becomes uneconomical. Principles and characteristics of diffractor grating are given with test results. Various factors affecting the diffractor grating behavior are investigated, and comparisons are made with the double-plane reflector system. The diffractor grating is shown to be applicable to short-haul microwave systems and possibly reduce construction costs.