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Several modifications to the optimal interpolation (OI) technique for light-detection-and-ranging vector retrieval are proposed and shown to result in significant improvement in velocity retrieval accuracy. These modifications include changes to innovation covariance portioning, covariance binning, and analysis increment calculation. A validation of the modified OI technique is presented, comparing the retrievals with the original technique in each case. The modified technique is able to perform retrievals with better accuracy, preserves local information better, and compares well with tower measurements.