Pseudo-random-modulation CW lider (RM-CW lider) is a new lider technique, which is essentially an optical version of the pseudo-noise (PN) radar. However, the crossover function is introduced to the RMCW lider in order to suppress the near-, distance strong-echo contribution. In his paper, RM-CW lidar is theoretically treated both in Mie-scattering lidar and differential absorption lidar (DIAL) cases. The fundamental performance of the former is experimentally demonstrated and the ability ofthe latter is discussed in a detailed case using an Ar laser as a transmitting laser.