This paper describes an innovative method for processing nadir altimeter data acquired in Synthetic Aperture Radar (SAR) mode, enhancing the system performances over open ocean. Similarly to the current SAR data processing scheme, the so-called LR-RMC (Low Resolution with Range Migration Correction) method, originally designed by Phalippou and Demeester (2011), includes Doppler beam forming, Doppler shift correction and range correction. In LR-RMC, however, an alternative and less complex averaging (stacking) operation is used so that all the Doppler beams produced in a radar cycle (4 bursts of 64 beams for the open-burst Sentinel-3-mode altimeter) are incoherently combined to form a multi-beam echo. In that manner, contrarily to the narrow-band SAR technique, the LR-RMC processing enlarges the effective footprint to average out the effects of surface waves and particularly those from small sub-mesoscale structures (<1 km) that are known to impact SAR-mode performances. On the other hand, the number of averaged beams is as high as in current SAR-mode processing, thus providing a noise reduction at least equally good. The LR-RMC method has the added benefit of reducing the incoherent integration time with respect to the SAR-mode processing (50 ms compared to 2.5 s) limiting possible surface movement effects. By processing one year of Sentinel-3A SRAL SAR-mode data using the LR-RMC method, it is shown that the swell impact on the SAR altimeter performances is totally removed and that an improvement of 10–50% is obtained in the measurement noise of the sea surface height and significant wave height with respect to SAR mode. Additionally, observational capabilities over the middle scales are enhanced potentially allowing the ocean mesoscale features to be retrieved and observations assimilated more usefully in ocean models.