Synthetic Aperture Radar (SAR) images reveal serious geometric distortions that are caused by terrain undulations. This paper presents a newly developed method on SAR image geometric correction which is the dual-aspect geometric correction based on digital elevation model (DEM) to overcome the inherent shortages of SAR image such as foreshortening, shadow and layover and correct the distorted or lost backscatter coefficient values in mountainous area. The Radarsat-2 SAR images were used in this study. The results show that this method can effectively eliminate the effect of geometric distortions and compensate the lost or distorted backscatter coefficients, especially is useful for eliminating layover and shadow distortions in SAR images. This method solves the geometric correction problem that cannot be solved with single SAR image.