Reticle systems, which are widely used in infrared (IR) missile seekers, are considered to be the classical approach for estimating the position of a target in the field of view (FOV). This paper presents an effective simulation tool that gives tracking results of the concentric annular ring reticle seeker. We construct the concentric annular ring reticle seeker on Matlab-Simulink for a dynamic simulation. Our simulation model provides tracking results in various cases, and is applicable to the study of the development of the advanced seekers. While false targets such as flares are presented in the FOV, simulation results show that the existing seeker cannot determine a precise target location. In order to decrease the susceptibility to countermeasures such as flares, we propose an efficient counter-countermeasure using the correlated relationship of modulated signals and the references. We have ascertained that the reticle seeker using our technique make more effective target tracking than previous seekers.