A multibeam microwave radar altimeter concept is numerically simulated to evaluate its capability to remotely sense mesoscale oceanographic features and eddies in particular. The study tests the sensitivity of the sensor to variations of systematic and environmental parameters, including sensor attitude angle, sensor position, and system errors. A novel concept to the detection of simulated ocean eddies in the presence of tracker noise gives excellent results; the technique is shown to be simple and accurate. The minimum size of the eddy detectable by the multibeam altimeter is presented for a given performance characteristic of the radar.