We present a method for detecting rain-contaminated wind vector cells in QuikSCAT SeaWinds scatterometer observations. This rain detection method uses passive measurements of microwave brightness temperature obtained as a signal processing by-product from the standard SeaWinds active scatterometer measurements. The rain flag is developed theoretically first by calibrating the SeaWinds brightness temperatures using Special Sensor Microwave Imager (SSM/I) observations and then by using physically based simulations including the effects of both rain and ice precipitation. Rain retrievals are validated by comparison to SSM/I-observed rain rates and to other independently produced SeaWinds rain flags and produce rain maps that agree well with the SSM/I estimates. The rain detection method may be used to complement existing rain flags in the current operational QuikSCAT data product. In addition, an atmospheric correction algorithm was developed to dynamically adjust the backscatter coefficient measurements for variations in water vapor and cloud liquid water; results are not significantly different from the climatological correction currently implemented.