This study discussed the applicability of satellite SAR (Synthetic Aperture Radar) imagery with regard to reservoir monitoring, and tried the extraction of reservoir storage from multi-temporal C-band RADARSAT-1 SAR backscattering images of Yedang and Goongpyeong agricultural reservoirs, acquired from May to October 2005. SAR technology has been advanced as a complementary and alternative approach to optical remote sensing and in-situ measurement. Water bodies in SAR imagery represent low brightness induced by low backscattering, and reservoir storage can be derived from the backscatter contrast with the level-area-volume relationship of each reservoir. The threshold segmentation over the routine preprocessing of SAR images such as speckle reduction and low-pass filtering concluded a significant correlation between the SAR-derived reservoir storage and the observation record in spite of the considerable disagreement. The result showed up critical limitations for adopting SAR data to reservoir monitoring as follows: the inappropriate specifications of SAR data, the unreliable rating curve of reservoir, the lack of climatic information such as wind and precipitation, the interruption of inside and neighboring land cover, and so on. Furthermore, better accuracy of SAR-based reservoir monitoring could be expected through different alternatives such as multi-sensor image fusion, water level measurement with altimeters or interferometry, etc.