Abstract: A system for compensating for phase noise, with particular application in lidar, includes a compensation interferometer that receives a signal from a source, and splits it into a first and second path, with a path length difference ?? between them. Typically the path length is significantly less than that of the return distance to a target. The output of the compensation interferometer, which consists of phase noise generated in time ?? is vectorially summed during a time similar to a signal flight time to a target, and the result used to reduce phase noise present on measurements of a target. It further includes means for selecting ?? such that competing noise elements are reduced or optimised.