In this paper, a novel three-dimensional imaging algorithm of downward-looking linear array SAR is presented. To improve the resolution, multiple signal classification (MUSIC) algorithm has been used. However, since the scattering centers are always correlated in real SAR system, the estimated covariance matrix becomes singular. To address the problem, a three-dimensional spatial smoothing method is proposed in this paper to restore the singular covariance matrix to a full-rank one. The three-dimensional signal matrix can be divided into a set of orthogonal three-dimensional subspaces. The main idea of the method is based on extracting the array correlation matrix as the average of all correlation matrices from the subspaces. In addition, the spectral height of the peaks contains no information with regard to the scattering intensity of the different scattering centers, thus it is difficulty to reconstruct the backscattering information. The least square strategy is used to estimate the amplitude of the scattering center in this paper. The above results of the theoretical analysis are verified by 3-D scene simulations and experiments on real data.