The principal function of the Mode S sensor (1), an evolutionary upgrade to the current ATCRBS (Air Traffic Control Radar Beacon System) sensor, is the output of one reportper aircraft per antenna scan. This report contains the current aircraft position (range and azimuth), the identity code of its transponder, and the altitude code as supplied by its encoding altimeter. This information is derived from the aircraft transponder replies received at the sensor in response to interrogations transmitted by the sensor. For aircraft equipped with Mode S transponders, a single scheduled interrogation, directed only to that aircraft, elicits a single coding-protected reply containing both identity code and altitude code. For aircraft equipped with ATCRSS transponders, a sequence of interrogations alternately eliclt replies containing un-protected identity code or altitude code from all aircraft in the antenna mainbeam. From this description, it is clear that a Mode S aircraft report can be constructed directly fron the single reply. Surveillance processing, defined as functions that perform scan-to-scan correlation and tracking, are required in general only to predict the next scan position of the aircraft. This information is needed for the proper scheduling of the next interrogation. ATCRBS reports constructed from the aircraft replies, on the other hand, can have a number of deficiencies. The more common such problems are: 1. Either the identity code or altitude code or both can have bits declared either in error or with low confidence by the reply processor due to garbling of overlapping replies. 2. False alarm reports not corresponding to aircraft can be generated from fruit replies (responses to other sensors' interrogations) or reflection replies. 3. Multiple reports for an aircraft can be generited due to incorrect correlation of replies caused by errors in range, azimutn, or code determination. Surveillance processing for ATCRBS aircraft is tasked with correcting these problems prior to report output to the controllers or other users. It does this by correlating raw target reports with, existing track files, and using the information in these files derived from prior scan reports to correct, complete, or reject erroneous reports. This paper presents the major algorithms contained within the Mode S sensor ATCRBS surveillance processing function. It then presents experimental results that demonstrate their effectiveness. Full details of surveillance processing can be obtained by reference to (2) or [3).