Speckle noise and the spatial resolution of the Sentinel−1 Synthetic Aperture Radar (SAR) image can cause significant difficulties in the detection of small objects, such as small ships. Therefore, in this study, the Polarimetric Combination-based Ship Detection (PCSD) approach is proposed for enhancing small ship detection performance, which combines three different characteristics of polarization: newVH, enhanced VH, and enhanced VV. Employing the Radar Cross Section (RCS) value in three stages, the newVH was utilized to detect Automatic Identification System (AIS) -ships and small ships. In the first step, the adaptive threshold (AT) method was applied to newVH with a high RCS condition (>−10.36 (dB)) for detecting AIS-ships. Secondly, the first small ship target was detected with the maximum suppression of false alarms by using the AT with a middle RCS condition (>−16.98 (dB)). In the third step, a candidate group was identified by applying a condition to the RCS values (>−23.01 (dB)), where both small ships and speckle noise were present simultaneously. Subsequently, the enhanced VH and VV polarizations were employed, and an optimized threshold value was selected for each polarization to detect the second small ship while eliminating noise pixels. Finally, the results were evaluated using the AIS and small fishing vessel tracking system (V-Pass) based on the detected ship positions and ship lengths. The average matching results from 26 scenes in 2022 indicated a matching rate of over 86.67% for AIS-ships. Regarding small ships, the detection performance of PCSD was 42.27%, which was over twice as accurate as the previous Constant False Alarm Rate (CFAR) ship detection model. As a result, PCSD enhanced the detection rate of small ships while maintaining the capacity for detecting AIS-equipped ships.