The polarimetric active radar calibrator (PARC) is extensively used as an external test target for system distortion compensation and polarimetric calibration for the high-resolution polarimetric radar. However, the signal undergoes distortion in the PARC, affecting the effectiveness of the compensation and the calibration. The system distortion compensation resulting from the distortion of the amplitude and phase in the PARC was analyzed based on the “method of paired echoes.” Then the correction method was proposed, which separated the ideal signals from the distorted signals. Experiments were carried on real radar data, and the experimental results were in good agreement with the theoretical analysis. After the correction, the PARC can be better used as an external test target for the system distortion compensation.