The theory of forming ship outline image is studied in this paper. Target recognition based on radar outline image synthesizes advantages of one dimension range image and echo sequence relativity. Firstly, three ship models are founded. Outline image data is simulated and multi-characters are extracted by transformed gray level Image. Then, the problem of character choise is studied based on best enlarged distance between different classes and reduced distance within same class. Finally, SNR effect and target aspect angle effect are discussed. The simulative recognition result proposes the appropriate SNR and samples to constitute templates. The analysis shows that radar outline image has good target recognition ability.