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Recent studies indicate that the Cloud-Aerosol Lidar with Orthogonal Polarization (CALIOP) aboard the Cloud-Aerosol Lidar and Infrared Pathfinder Satellite Observations (CALIPSO) satellite provides valuable information about ocean phytoplankton distributions. CALIOP’s attenuated backscatter coefficients, measured at 532 nm in receiver channels oriented parallel and perpendicular to the laser’s linear polarization plane, are significantly improved in the Version 4 data product. However, due to non-ideal instrument effects, a small fraction of the backscattered optical power polarized parallel to the receiver polarization reference plane is misdirected into the perpendicular channel, and vice versa. This effect, known as polarization crosstalk, typically causes the measured perpendicular signal to be higher than its true value and the measured parallel signal to be lower than its true value. Therefore, the ocean optical properties derived directly from CALIOP’s measured signals will be biased if the polarization crosstalk effect is not taken into account. This paper presents methods that can be used to estimate the CALIOP crosstalk effects from on-orbit measurements. The global ocean depolarization ratios calculated both before and after removing the crosstalk effects are compared. Using CALIOP crosstalk-corrected signals is highly recommended for all ocean subsurface studies.