The invention discloses a radar transceiver with phase noise cancellation. A method for cancelling phase noise in a radar signal is described herein. In accordance with one embodiment, the method includes transmitting an RF oscillator signal, which represents a local oscillator signal including phase noise, to a radar channel and receiving a respective first RF radar signal from the radar channel.The first RF radar signal included at least one radar echo of the transmitted RF oscillator signal. Further, the method includes applying the RF oscillator signal to an artificial radar target composed of circuitry, which applies a delay and a gain to the RF oscillator signal, to generate a second RF radar signal. The second RF radar signal is modulated by a modulation signal thus generating a frequency-shifted RF radar signal. Further, the method includes subtracting the frequency-shifted RF radar signal from the first RF radar signal.