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This analysis develops an innovative SAR image formation algorithm that separates direct-scatter echoes in an image from echoes that are the result of multiple bounces, and then maps each set of reflections to a metrically correct image space. Current processing schemes place the multiple-bounce (MB) echoes at incorrect (i.e., ghost) locations due to fundamental assumptions implicit in conventional processing. Two desired results are achieved by use of this new Image Reconstruction Algorithm for Multi-bounce Scattering (IRAMS). First, ghost returns are eliminated from the primary image space, thereby improving the relationship between the image pattern and the physical distribution of the scatterers. Second, a set of auxiliary "delay" image planes containing only MB echoes is created which possesses characteristic information about the scene being imaged. These auxiliary image planes offer the potential of improving target detection and identification capabilities.