A system for accurate determination of target orientation in a laser tracking system. A target aperture is configured to produce spatially distinct laser beam and background images. A processing unit is configured to determine a centroid of the laser beam image position using information collected from detected images, such as laser beam and background images. The laser beam image centroid position is used to determine an accurate target orientation. In one example, a process for determining target orientation includes the steps of collecting a background image passing through a first retro-reflector at a first laser light sensor; 2) collecting a measurement image passing through a second retro-reflector at a second laser light sensor; 3) establishing a common positional reference point for the measurement image and the background image; 4) subtracting the background image from the measurement image based on the common positional reference point.