This letter presents a modification to the established Fraunhofer line discrimination (FLD) method for improving the accuracy of the solar-induced chlorophyll fluorescence (ChF) retrieval over terrestrial vegetation. The FLD method relies on the decoupling of reflected and ChF emitted radiation by the evaluation of measurements inside and outside the absorption bands. The improved FLD method introduces two correction coefficients that relate the values of the fluorescence and the reflectance inside and outside the absorption band. The new method uses the full spectral information around the absorption band to derive these coefficients. A sensitivity analysis has been performed to evaluate the impact of the correction coefficients on the accuracy of the ChF estimation. The new formulation has been tested for the O2 A-band on synthetic data obtaining lower errors in comparison to the standard FLD and has been successfully applied to real measurements at canopy level. © 2008 IEEE.