A dynamic regularization scheme for rain-rate retrievals from attenuated radar measurements is presented. Most regularization techniques, including the optimal estimation method, use the state-space parameters to regularize the problem, which will always lead to a bias in the solution. To avoid this problem the authors introduce an evolutionary regularization technique, which is based on the spatial derivative of the measured reflectivity profile and allows for a bias-free global solution. The regularization strength is determined by the quadratic eigenvalue solution using the regularized total least squares method. With the new method, the authors perform a retrieval of rain-rate profiles from simulated measurements of a nadir-pointing W-band (94 GHz) radar, in a configuration similar to the cloud radar employed on CloudSat. The simulations assume that multiple scattering is negligible and only liquid hydrometeors are taken into account. The authors compare the results of this method with the outcome of an optimal estimation method and demonstrate that their method is superior in terms of reliability, correlation coefficient, and dispersion to the optimal estimation method for layers experiencing high values of attenuation; therefore, the a priori bias typical for optimal estimation solutions is avoided.