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A novel fast algorithm of polarimetric image simulation for SAR observation over comprehensive terrain scene is developed based on the mapping and projection principles. It incorporates penetrable and impenetrable objects, volumetric and surface scatterers in the imaging space with the extinction, attenuation, shadowing and multiple scattering effects. Scattering of the vegetation canopy is modeled as a layer of random non-spherical particles by using the vector radiative transfer model. Scattering from the ground surface and building objects is calculated by using the IEM rough surface model. As an example, the polarimetric SAR images for a virtual terrain scene, composed by tree canopies, farmland, buildings, rough land surface, hills and rivers, are simulated.