Abstract: An overlay error is determined using a diffraction based overlay target by generating a number of narrow band illumination beams that illuminate the overlay target. Each beam has a different range of wavelengths. Images of the overlay target are produced for each different range of wavelengths. An intensity value is then determined for each range of wavelengths. In an embodiment in which the overlay target includes a plurality of measurement pads, which may be illuminated and imaged simultaneously, an intensity value for each measurement pad in each image is determined. The intensity value may be determined statistically, such as by summing, finding the mean or median of the intensity values of pixels in the image. Spectra is then constructed using the determined intensity value, e.g., for each measurement pad. Using the constructed spectra, the overlay error may then be determined.