Nonlinear frequency modulation (NLFM) signal can construct the signal’s power spectral density (PSD) to reduce sidelobes without loss of signal-to-noise ratio. LuTan-1 (LT-1) is an L-band spaceborne synthetic aperture radar (SAR) mission which is launched in the beginning of 2022, and a high-precision NLFM signal generator is developed in LT-1. However, the existing model, i.e., the traditional frozen ionosphere model, cannot accurately describe ionospheric dispersion effects faced by the NLFM signal due to the nonlinear characteristic of the instantaneous frequency. Thus, an extended model is established in this letter to describe ionospheric dispersion effects of the NLFM signal. Then, the differences of ionospheric dispersion effects on the NLFM and linear frequency modulation (LFM) signals are compared. Afterward, a method that embedded into the focusing procedure is proposed, which aims to eliminate ionospheric dispersion effects for the NLFM signal. Finally, the hardware-in-the-loop simulations of point targets and distributed targets are performed to verify the proposed method. The method proposed in this letter is used in the ground processing system of LT-1.