Considering about the effect of whitecaps and foams on pulse-limited Radar Altimeters, an improved algorithm of retrieving sea surface wind speed is proposed in this paper. Firstly, a four-layer dielectric model is established in order to simulate an air-sea interface. Secondly, the microwave reflectivity of a sea surface covered by spray droplets and foams at 13.5 GHz is computed based on the established model. These computed results show that the effect of spray droplets and foams in high sea state conditions shall not be negligible on retrieving sea surface wind speed. Finally, compared with the analytical algorithms proposed by Zhao and some calculated results based on a three-layer dielectric model, an improved algorithm of retrieving sea surface wind speed is presented. At a high wind speed, the improved algorithm is in a better accord with some empirical algorithms such as Brown, Young ones and et al., and also in a good agreement with ZT and other algorithms at low wind speed. This new improved algorithm will be suitable not only for low wind speed retrieval, but also for high wind speed retrieval. Better accuracy and effectiveness of wind speed retrieval can also be obtained.