In order to improve the accuracy of star centroid extraction of star sensor under single event effect condition, an on-orbit correction method based on PSF reference model was proposed. With the construction of star reference model and residual image correction, the proposed method could effectively accomplish single event effect noise elimination and star shape correction, which reduced star centroid error. Compared with existing methods, the proposed method could maintain the energy of stars while denoising. A simulation experiment certificated the effectiveness of the proposed method. A contrast experiment showed the superiority of the proposed method compared with other denoising algorithms.