The effects of a non-Gaussian ocean on satellite altimetry parameter estimation are discussed. The first part of this paper shows how non-Gaussian ocean parameters affect height estimation for satellites of the Seasat/Geosat/TOPEX type. In the second part, the estimation of the altimeter tracker bias and the non-Gaussian ocean parameters from the altimeter return signal is studied. A new convolution model that facilitates the deconvolution of the ocean surface specular point probability density function is introduced. Next, it is argued that it is not feasible in practice to estimate the electromagnetic bias from noisy altimeter returns. It is then shown that the least squares estimation of the surface parameters in the log-frequency domain has several advantages over estimating parameters in the time domain. The maximum likelihood estimation equations for the estimation of the waveform parameters are derived, and their solution is discussed. ¿ American Geophysical Union 1988