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Laser self-mixing (SM) sensors are successfully used to measure displacement in the absence of speckle. However, speckle deforms the SM signal rendering it unusable for standard displacement extraction techniques. This article proposes a new signal-processing technique, based on tracking the signal envelope, to remedy this problem. Algorithm was successfully employed to measure long-range displacements (25 mm), in the presence of speckle and the lateral movement of the target, both causing severe corruption of the SM signal. It therefore enabled the use of the sensor on noncooperative targets without the need for sensor positioning and/or alignment. The results have been obtained for SM signals in which the envelope amplitude is varied by a factor of 28, without the loss of interferometric fringes. The use of this technique effectively removes the need for opto/electro-mechanical components traditionally used to measure long-range displacement in the presence of speckle.