Multiple target detection using an amplitude modulated and power spectrum subtracted joint transform correlator is proposed. In this technique, the joint power spectrum is firstly modified by the subtraction of the power spectra of the input scene only and of the reference image from it, the resultant modified joint power spectrum is next multiplied by the amplitude modulated filter function. The effect of noise in the input scene on the performance of the joint transform correlator is analyzed and quantified. The technique is found to deliver a better correlation output and the capacity to accommodate noise in the input scene than both the fringe adjusted filter and the modified fringe adjusted filter based joint transform correlators.