Several studies are in progress for proposing an Earth orbiting radar sounder (EORS) mission. Some of them consider as baseline system architecture a recently proposed distributed radar sounding array in formation flight with enhanced capabilities of clutter suppression. Besides clutter, the detectability of subsurface targets may also be affected by the propagation of the radar signal through Earth’s ionosphere. These effects include frequency-dependent phase dispersion and scintillations. In this letter, we present a subsurface detection performance assessment of an EORS with distributed architecture focusing on the ionospheric effects. The novel contributions of this work are: (i) simulation of the coherent radar response of a representative polar ice target (englacial layering) in the distributed radar sounding case; (ii) inclusion of spatially-dependent ionospheric scintillation effects on the distributed beam pattern; (iii) inclusion of phase dispersion effects for different values of total electron content (TEC), and (iv) analysis of the subsurface detection performance. Detectability analysis is performed after applying a state-of-the-art technique for compensating ionospheric phase-dispersion effects. The results show that the englacial layering is detectable by compensating the dispersion effects in the range between 1 and 21 TECU in the ionosphere. The layering is also detectable at higher values of TEC by improving the accuracy of TEC estimation. Moreover, even without compensation, the worst-case ionospheric phase scintillations of 25° produces a negligible effect on the detectability.