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We propose a Multiple Input Multiple Output (MIMO) radar system with distributed antennas that employs monopulse processing at the receivers. We also propose an algorithm to track a moving target using this system. This algorithm is simple and practical to implement. It efficiently combines the information present in the local estimates of the receivers. Since most modern tracking radars already use monopulse processing at the receiver, the proposed system does not need much additional hardware. Using numerical simulations, we demonstrate the advantages of the proposed system over conventional single antenna monopulse radar. We also show that the proposed algorithm keeps track of rapidly maneuvering airborne and ground targets.