Reticle seekers temporally modulate target location onto the incoming spatial signal. When large or multiple targets are present in the field of view (FOV), however, it is hard to precisely modulate the incoming target signal by the reticle. To solve this loss-of-modulation-depth problem, we present an improved reticle seeker using the segmented focal plane array (FPA). The new reticle system uses the normalized difference as well as the modulated signal of each detector output in the segmented FPA. In simulation, we have ascertained the proposed system can perform effective analysis and tracking for multiple or large targets.