Stepped-frequency signal is a broad band signal which enhances range resolution of radar at the cost of increasing bandwidth. Baseband signal that is received in stepped-frequency radar can be thought of as the linear combination of exponential function which contains target information, while Prony algorithm is a mathematical mode which uses a linear combination of exponential function to describe equal space between sampling data. Extended Prony algorithm is applied to stepped-frequency radar, which can obtain more exact target information and overcome the shortcomings of using IDFT to synthesize high resolution range profiles. Corresponding modeling analysis and experiment simulation explain the advantages of Prony's method.