Abstract: A method, comprising: generating a macro P-wave velocity model, including resolution of residual moveout errors, using reflection tomography from a seismic data set; generating a diffraction response from the macro P-wave velocity model for a given common image gather location therein assuming a locally laterally invariant model; converting the generated diffraction response for the given common image gather location to a migrated reflection response to yield a modeled data set; comparing the modeled data set to the given common image point from the seismic data set; updating the macro P-wave velocity model based on the result of the comparison; and iterating the diffraction response generation, the diffraction response conversion, comparison, and update until the modeled data set converges to the common image gathers.