Using phase encoded technique, the proposed joint transform correlator reduces greatly the strong dc component and cross correlations between each input target, and the conjugate cross correlation between the reference and input targets, which are existing in the classical joint transform correlator. All these achievements are accomplished in only one step. With the use of amplitude modulation, the correlation output is bettered greatly in terms of correlation width, correlation peak sharpness, and anti noise ability. At the end, computer simulation is given which proved the efficiency of the proposed method.