The rotating fan-beam scatterometer (RFSCAT) is a new type of satellite scatterometer that is proposed approximately 10 a ago. However, similar to other rotating scatterometers, relatively larger wind retrieval errors occur in the nadir and outer regions compared with the middle regions of the swath. For the RFSCAT with the given parameters, a wind direction retrieval accuracy decreases by approximately 9 in the outer regions compared with the middle region. To address this problem, an advanced wind vector retrieval algorithm for the RFSCAT is presented. The new algorithm features an adaptive extension of the range of wind direction for each wind vector cell position across the whole swath according to the distribution histogram of a retrieved wind direction bias. One hundred orbits of Level 2A data are simulated to validate and evaluate the new algorithm. Retrieval experiments demonstrate that the new advanced algorithm can effectively improve the wind direction retrieval accuracy in the nadir and outer regions of the RFSCAT swath. Approximately 1.6 and 9 improvements in the wind direction retrieval are achieved for the wind vector cells located at the nadir and the edge point of the swath, respectively.