When a FM-CW radar is used to measure the target distance, the nonlinearity relationship between the VCO control voltage and the output frequency makes an adverse effect on the measurement accuracy. Recently, many nonlinearity correction schemes using signal processing techniques and dedicated hardwares have been studied. This paper presents a signal processing technique to compensate for the VCO nonlinearity using a reference signal. To demonstrate the validity of the presented technique, several experiments were conducted and the results show reduction of the distortion in the range profile and the resolution improvement.