The single channel transceiver with polarization diversity is a target detion and tracking system that results from combining the well-established technology of single channel transceiver with that of microstrip polarization-diverse antenna. The single channel transceiver with polarization diversity transmits a pair of pulses of a pre-selected polarization sense toward a target object and receives two scattered pulses of orthogonal polarizations in rapid sequence. Thereupon, a second pair of pulses, this time of opposite polarization, is transmitted and, again, two scattered pulses of orthogonal polarizations from this second pair of transmitted pulses are received in rapid sequence. Thus, the single channel transceiver with polarization diversity has the capability to obtain the complete scattering matrix of a target by use of four transmitted pulses. The received scattered pulses are further processed by the transceiver to derive the polarization signature that is indicative of the nature of the object from which they scattered in reflection and thereafter used to identify the target among clutter or background.