A compact airborne Raman lidar system, which can perform water vapor and aerosol measurements both during nighttime and daytime is described. The system design, setup and the data processing methods are described in the paper. The Raman lidar was tested on University of Wyoming King Air research aircraft (UWKA) during the Wyoming King Air PBL Exploratory Experiment (KAPEE) in 2010. An observation showing clouds, aerosols and a dry line is presented to illustrate the lidar detection capabilities. Comparisons of the water vapor and aerosol measurements using the Raman lidar and other in situ airborne instruments show good agreement.